Unlock a new power with the Court – the Superior Court in Royal and SunAlliance Insurance v. Ontario Provincial Police agreed to order productions from non-parties in the context of a priority arbitration.
The Facts
Royal and Sun Alliance Insurance (“RSA”) initiated a priority dispute against Certas, where the crux of the case stemmed from the ownership of the vehicle involved in the accident.
RSA sought the production of the investigation file of the Ontario Provincial Police (“OPP”) to establish the vehicle owner. Given the relevance, the arbitrator ordered the OPP, a non-party, to produce its investigation file. In response, the OPP refused to produce it without a court order. The OPP further noted that an arbitrator has no jurisdiction over third parties and, as a result, could not compel third parties, such as the OPP, to produce documents.
RSA commenced an Application to the Court for the production of the investigation file.
Decision
In their analysis, the Court emphasized that arbitrators derive their authority from the arbitration agreement. Therefore, it was concluded that arbitrators cannot impose obligations on third parties.
However, it was noted that the Court can intervene in the arbitration process for specific and limited reasons pursuant to the Arbitration Act, 1991, SO 1991, c. 17. Namely, section 6.1 of the Act empowers the Court to assist in “conducting arbitrations.” Additionally, section 29(4) of the Act provided the Court with jurisdiction to issue an order. Specifically, section 29(4) states:
On the applicant of a party or of the arbitral tribunal, the court may make orders and give directions with respect to the taking of evidence for an arbitration as if it were a court proceeding.
The Court had to determine whether there was sufficient scope for the Court to order third-party disclosure in advance of an arbitration hearing. The Court ultimately granted the order as the information sought was highly relevant, not burdensome, and aligned with the legislative goal of resolving priority disputes through arbitration. Additionally, the OPP did not oppose the relief.
Conclusion
This case highlights the importance of judicial support in arbitration. By granting RSA’s application for third-party disclosure, the Court reinforced the principle that arbitration can be effectively supported by judicial intervention, ensuring a fair resolution of disputes.
However, it is essential to note that the Court will not simply rubber-stamp any request for production. Parties have an obligation to ask the Court to make an order in support of arbitration by demonstrating the appropriateness, relevance, and scope of the request being sought.
Overall, this decision demonstrates that parties in arbitration can unlock a new power with the assistance of the Court!
See Royal and Sunalliance Insurance v. Ontario Provincial Police, 2024 ONSC 5505 (CanLII), <https://canlii.ca/t/k76r5>
