Alberta Court of Appeal Grants Stay on Arbitration Costs Award Challenge

• The Alberta Court of Appeal granted a stay of enforcement for the challenge against an arbitration costs award in Javaid v Javaid.
• The applicant was given permission to appeal the merits award, but the application to set aside the costs award was denied due to being filed late.
• The Court of Appeal found it reasonably arguable that procedural fairness issues were determinative of the application to set aside the costs award.
• The decision may affect lawyers representing clients who have been awarded arbitration costs and their procedures for submitting cost submissions.

The Court of Appeal has now given the applicant permission to appeal this decision and has stayed the enforcement of the chambers judge's order until the appeal is resolved.

The Alberta Court of Appeal has granted a stay of enforcement for the challenge against an arbitration costs award in the case of Javaid v Javaid. The applicant had sought permission to appeal the merits award, which was granted on April 14 by a chambers judge. However, the application to set aside the costs award was denied due to being filed late under s. 46(1) of Alberta's Arbitration Act, 2000. The Court of Appeal has now given the applicant permission to appeal this decision and has stayed the enforcement of the chambers judge's order until the appeal is resolved.

The case revolves around the procedural fairness issue in arbitration, specifically whether the respondent raised the statutory time period for the first time during oral arguments and whether the applicant had enough opportunity to address this matter. The Alberta Court of Appeal has found it reasonably arguable that these issues are determinative of the application to set aside the costs award. This decision highlights the importance of procedural fairness in arbitration, particularly when dealing with time-sensitive matters such as cost submissions.

The implications of this decision extend beyond the specific case, as it may affect lawyers representing clients who have been awarded arbitration costs. The stay of enforcement for the challenge against the arbitration costs award suggests that procedural fairness issues may be taken seriously by the courts. As a result, lawyers may need to review their procedures for submitting cost submissions and ensure they are meeting statutory time limits to avoid potential enforcement issues.

Lawyers representing clients who have been awarded arbitration costs may need to review their procedures for submitting cost submissions and ensure they are meeting the statutory time limits, as a failure to do so could result in the costs award being enforced despite potential procedural fairness issues.

Source: Original reporting via Canadian Legal Newswire