Blakes Guide to Litigation and Dispute Resolution in Canada

Canada is a federal system comprising ten provinces and three territories. In addition to a federal government, each province and territory has its own government. At the federal level, the seat of government is in Ottawa, where members of Parliament from across Canada convene.

Canada is governed by two different legal systems: common law and civil law. In the common law system — used in all provinces and territories except for Quebec — the courts interpret the meaning and application of legislation and thereby develop the law, rather than relying on government legislation alone.

Class actions are proceedings brought by a representative plaintiff on behalf of, or for the benefit of, a class of persons having claims with common issues. The purpose of a class action is to efficiently address cases of alleged mass wrong and to improve access to justice for those whose claims may not otherwise be pursued.

Quebec is among the few Canadian provinces where law is practised regularly in both English and French. Although most lawyers practising in Quebec are bilingual and, therefore, can give advice in both languages, there is still a perceived language barrier that makes Quebec seem less accessible than other jurisdictions.

Although there are many different types of civil (non-criminal) proceedings heard in Canada's courts, this section highlights aspects of Canadian law and legal procedure affecting only some of the most common claims involving businesses.

Canadian provinces and territories have numerous administrative agencies, tribunals, boards and commissions that regulate a wide range of activities and business interests. The operations of nearly every business may be affected in some way by the activities of one or more of these agencies. 

Mediation is a method of dispute resolution in which two or more parties meet with an impartial mediator to attempt to agree to a settlement of their dispute. The mediator has no authority to issue any orders or to compel the parties to enter into a settlement agreement.

There is a trend in Canada toward resolving commercial disputes by arbitration rather than through litigation in the courts. In most cases, Canadian courts will enforce both the agreement to submit a dispute to arbitration and the resulting arbitral award.

Canadian courts treat foreign law as a matter of fact rather than as a matter of law. As such, the party relying on foreign law must plead and prove that law. Foreign law is proven through the testimony of experts.