BINDING ARBITRATION - Jurisdiction - Stay of arbitration proceedings - Awards and remedial relief - Enforcement

Law360 Canada ( March 18, 2026, 9:36 AM EDT) -- Appeal by Sociedad Concesionaria Metropolitana de Salud S.A. (Sociedad CAD) from an order staying its Ontario application to recognize and enforce a Chilean arbitral award against Webuild S.p.A. (Webuild), a non-party to the arbitration. The arbitral award granted Sociedad CAD $188 million against Astaldi S.p.A. (Astaldi). Following Astaldi’s restructuring under Italian bankruptcy law, its Continuity Business was transferred to Webuild under a Partial Spin-Off Agreement. Sociedad argued that Webuild assumed Astaldi’s liability for the award under that agreement and sought enforcement in Ontario. Webuild moved to stay the application, asserting Ontario lacked jurisdiction or was forum non conveniens, as liability under the Spin-Off Agreement was governed by Italian law and should be determined in Italy. The motion judge agreed with Webuild that liability and enforcement were severable issues, and that Italy was the appropriate forum to determine liability. As such, the motion judge granted a temporary stay. Sociedad contended that forum non conveniens did not apply to recognition and enforcement proceedings and argued Ontario courts have previously determined liability at the enforcement stage. It claimed the stay would effectively bar enforcement in Ontario and cause prejudice. Webuild denied that the motion judge committed any error. The issues were whether the motion judge erred in applying forum non conveniens to an enforcement proceeding, in severing liability from enforcement, in concluding Italy was the more appropriate forum, in treating the stay as temporary, and in ordering costs payable forthwith....
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