Vento Motorcycles, Inc. v. United Mexican States
Vento Motorcycles, Inc.
Law Firm / Organization
Torys LLP
United Mexican States
  1. Background:
    • Vento initiated an arbitral claim against Mexico under NAFTA Chapter 11 due to Mexico’s denial of preferential tariffs, which allegedly caused Vento significant business losses.
    • The tribunal dismissed Vento’s claim, and the Application Judge upheld this dismissal. Vento appealed.
  2. Procedural Fairness Issue:
    • Vento argues that the tribunal denied procedural fairness by not allowing a witness to respond to a credibility challenge, affecting its ability to present its case (Article 34(2)(a)(ii) of the Model Law).
  3. Model Law and Test for Procedural Unfairness:
    • The Application Judge applied a stringent test for judicial intervention, focusing on "serious" conduct offending "basic notions of morality and justice."
    • Vento advocates for a standard emphasizing uniformity and good faith in international arbitration.
  4. CIPPIC’s Motion to Intervene:
    • The Samuelson-Glushko Canadian Internet Policy and Public Interest Clinic (CIPPIC) sought to propose a "material" procedural fairness violation test.
    • The Court denied CIPPIC’s motion, citing insufficient relevance and potential to complicate the appeal.

Conclusion:

  • CIPPIC's intervention was denied due to lack of direct relevance and the risk of expanding the appeal's scope.
  • No costs were awarded for this motion.

 

Court of Appeal for Ontario
M54976; COA-23-CV-1332
Corporate & commercial law
Respondent