Ontario's Highest Court Upholds NAFTA Arbitration Award Against Mexico


The Ontario Court of Appeal has just released an important decision upholding an arbitration award under NAFTA against Mexico in The United Mexican States v. Cargill, Incorporated.

This decision shows that Canadian courts will be reluctant to interfere on jurisdictional grounds with the remedial decisions of international commercial arbitrations.

The Court of Appeal held that the arbitral tribunal had not exceeded its jurisdiction. It arrived at that conclusion through a number of concessions by Mexico and other conclusions such as damage suffered by an investor is not limited to damage suffered in the country where the investment is located and no territorial limitation for damages or the occurrence of damages is contained in NAFTA.

Clearly, this decision is of great importance to arbitrations under NAFTA. It is also of general importance under the UNCITRAL Model Law.

There are several lessons to be learned from this decision which I explore in my article.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Thomas Heintzman, Arbitration Place | Attorney Advertising

Written by:


Arbitration Place on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.