More and more, commercial leases contain arbitration clauses. These clauses allow the parties to avoid going to court in case of a dispute between the landlord and the tenant.
Arbitration takes the form of a private tribunal where the case is heard by one or more arbitrators chosen by the parties.
To initiate the process, the parties must submit an arbitration request to the arbitrator. Upon receiving this request, the arbitrator prepares an Arbitration Agreement that must be signed by all parties.
The arbitrator then determines the proceedings of the procedure. The parties are free to be represented by a lawyer and to present their own expert witnesses. Once the instructions are completed, the arbitrator issues a written decision that is binding on the parties. This decision can be enforced by a court in case of non-compliance.
For information, you are invited to consult the arbitration rules of the "Association des notaires arbitres du Québec". Members of the Association are subject to ethical rules.
We cannot provide an exhaustive list of the different situations where an arbitrator can intervene, but here are some examples:
If the tenant:
If the landlord:
If the landlord and tenant do not agree on the terms of a renewal clause. Why let a dispute escalate and become burdened by court procedures? Arbitration, more than a means, is a more civilized solution to a dispute. Arbitration is therefore a dynamic solution that responds well to the economic imperatives of the contemporary world, where disputes must be resolved quickly while minimizing costs.
The main advantages of arbitration are confidentiality, expedited process, and cost limitation:
Parties who wish to use an even more flexible form of conflict resolution may be better advised to use mediation.
Due to their training and experience, notaries are specially called upon to be impartial between the parties to a contract. They are obliged to provide advice so that the decision and consent of the parties are well-informed. Notaries are the appropriate professionals to act as arbitrators in a dispute.
We invite you to submit your arbitration request to Notaire-Direct®, which will meet your needs.