Canadian Lawyer

September 2012

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who practises commercial litigation and arbitration. "It means you don't have to go to the local Chinese court to get injunctive relief. You can try to get it from the arbitration tribunal which may give you a modicum of comfort. Barry Leon, a partner and head of " the international arbitration group at Perley-Robertson Hill & McDougall LLP in Ottawa, says the new rules are a positive step but they do not solve the problem of enforcing an award once you obtain one. "The rules them- selves cannot revolutionize the process in China or anywhere else. It's whether the jurisdiction is arbitration friendly that matters. You would want comfort that the judicial system in China is supportive of arbitration. It is mov- ing in that direction but it won't move because of a change in the rules; it will move because of structural changes and experience and a greater development of sophistication in the Chinese court system." McArthur agrees with Leon on this point. "The real issue with China, and one that has come up in my practice [see Blue Horizon Energy Inc. v. Ko Yo Development Co. Ltd], is enforce- ment. The new rules do little to address this problem, but to be fair, it is not something you would expect arbitra- tion rules to deal with. The problem has more to do with the underlying Chinese law. McArthur says it doesn't matter if your contract is subject to CIETAC rules or ICC rules because of the problem of enforcement. "China signed the New York Convention, which is the interna- tional treaty that governs the enforce- ment of arbitration awards. It is the application of that convention that is very uneven in China. The reason is because it is local courts that deter- mines whether or not In conducting business with China, " arbitration award and there is a real problem with the treatment of all judi- cial and quasi-judicial rulings from outside China." McArthur says Chinese courts often refuse to enforce an award on the grounds of "public policy, to enforce an " an www.CANAD I AN Lawyermag.com SEPTEMBE R 2012 47 exception used by courts worldwide but employed with some frequency in China as a means to block awards. When drafting or reviewing con- tracts with China, Leon says the most important thing to remember is this: "Don't assume things are the same even if they look the same. For example, if you look at the rule for enforcement 25TH ANNIVERSARY EDITION in China, it will look pretty much the same as the other rules based on the New York Convention. The problem is not how it looks on the surface but how it gets applied. And that is true of the arbitration process itself. rising despite the uncertainty of the system, McArthur says: "There is Asked why trade with China keeps " BRITISH COLUMBIA ANNUAL PRACTICE, 2013 EDITION THE HONOURABLE MADAM JUSTICE JANICE R. DILLON AND GORDON TURRIFF, Q.C. For 25 years, British Columbia Annual Practice has provided expert insight on the rules of civil procedure in British Columbia. 1. Main Volume – everything you need for Court is in one volume, including: • The Supreme Court Civil Rules, Supreme Court Family Rules, Court of Appeal Rules, Supreme Court Act, and Court of Appeal Act, fully annotated with personally selected cases • The full text of 15 key statutes ON SUBSCRIPTION ORDER # 804600-65203 $88 Hardcover + Softcover + CD-ROM + Mobile Version August 2012 approx. 1800 pages (Hardcover) approx. 420 pages (Softcover) 978-0-88804-600-0 Annual volumes supplied on standing order subscription Multiple copy discounts available ONE TIME PURCHASE ORDER # 804600-65203 $93 Hardcover + Softcover + CD-ROM + Mobile Version August 2012 approx. 1800 pages (Hardcover) approx. 420 pages (Softcover) 978-0-88804-600-0 Multiple copy discounts available Shipping and handling are extra. Prices subject to change without notice and subject to applicable taxes. AVAILABLE RISK-FREE • Two way tables of concordance of the old and new Civil and Family Rules and more. 2. Forms Volume – provides easy access to all forms. 3. CD-ROM – includes the full text of British Columbia Annual Practice with links to the full-text judgments referred to in the text and Microsoft® Word "fillable" forms. 4. Mobile Version – includes all the Rules and case annotations, two way tables of concordance of the old and new Civil and Family Rules, and the text of several key statutes. 5. e-Notes – Customers on standing order subscription automatically receive email updates containing the latest case annotations with links to the full-text judgments available at no extra charge. FOR 30 DAYS Order online at www.carswell.com Call Toll-Free: 1-800-387-5164 CANADA LAW BOOK® NEW AND UPDATED IN THIS EDITION This new, 25th Anniversary Edition contains: • All amendments to the rules and legislation • • All the significant new decisions that affect the rules and legislation • Annotations pertinent to the new regime for leave to appeal to the Court of Appeal Annotatons reflecting all recent developments

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