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ENV 01-13 - McRae - Orgaworld_May 24 2013-Response

ENV 01-13 - McRae - Orgaworld_May 24 2013-Response

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Published by Jon Willing
City solicitor Rick O'Connor's explains the Orgaworld arbitration and the green bin audit.
City solicitor Rick O'Connor's explains the Orgaworld arbitration and the green bin audit.

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Published by: Jon Willing on May 24, 2013
Copyright:Attribution Non-commercial


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Council Member Inquiry FormDemande de renseignement d’un membre du ConseilSubmitted at:
Présenté au:
Comité de l’environnement
Councillor/Conseillère:Maria McRae
Date: May 22, 2013Date: le 22 mai 2013File/Dossier :
ENV 01-13
City Clerk and Solicitor / Greffier municipal et chef du contentieuxSubject/Objet: Arbitration Agreement with Orgaworld / Convention d’arbitrageavec Orgaworld
 At the regular meeting of the Environment Committee of May 21, 2013, the followinginquiry was made to the City Clerk and Solicitor from Committee Chair McRae:
That the City Clerk and Solicitor, within the limits of the confidentiality requirements set out in the Arbitration Agreement with Orgaworld as well as the National ArbitrationRules, provide all Members of Council with a memo outlining the City's commercial arbitration with Orgaworld, including when Council might anticipate a decision, as well as a broader explanation of the commercial arbitration process, with particular emphasis on the confidentiality required of parties involved in such arbitrations.The City Clerk and Solicitor will work with the Auditor General to provide his insightsregarding the audit on this matter.
Direction to Staff:Chair McRae requested that this memorandum be sent to members of Council byFriday, 24 May 2013.
Demande de renseignement:
Lors de la réunion du Comité de l’environnement du 21 mai 2013, la demande derenseignement suivante a été faite au greffier municipal et chef du contentieux de laprésidente du Comité McRae :
Que le greffier municipal et chef du contentieux, conformément à la réglementation sur la confidentialité établie dans la convention d’arbitrage conclue avec Orgaworld, ainsi qu’aux Règles d’arbitrage nationales, présente à tous les membres du Conseil une notede service dévoilant les grandes lignes du processus d’arbitrage commercial entre laVille et Orgaworld, en indiquant notamment le moment où le Conseil peut s’attendre àla prise d’une décision, de même qu’une description générale du processus d’arbitragecommercial, mettant en lumière les exigences en matière de confidentialité des partiesconcernées par un tel processus d’arbitrage.Le greffier municipal et chef du contentieux travaillera avec le vérificateur général pour fournir son point de vue concernant l’audit sur cette questions.
DIRECTIVE DU PERSONNEL :Présidente McRae a demandé que cette note sera envoyée aux membres du Conseilpar le vendredi 24 mai 2013.
Response (Date: 2013-May-24)
There has been significant public discussion, in the media and elsewhere, regarding theongoing commercial arbitration between the City of Ottawa and Orgaworld. In order toaddress some of the questions that have arisen in the context of this litigation, a morecomprehensive explanation of the rationale underlying the selection of arbitration as thepreferred dispute-resolution mechanism in commercial dealings may be helpful.Commercial Arbitration ProcessUpon entering into a commercial relationship, parties to a contract must try to foreseeand address the wide variety of matters that might affect their relationship. In light of thecomplexity of some commercial relationships, the possibility that some disagreementwill arise over the interpretation or administration of the contract cannot be overlooked.Therefore, the parties will often seek to put in place some mechanism to resolve thesedisagreements, recognizing both the likely ongoing and long term relationship betweenthe parties and the fact that terminating the relationship in its entirety may not be in theinterests of either party to the contract. Therefore, the parties are left either with thetraditional recourse to the courts, or to the alternative of commercial arbitration. Thereasons why commercial arbitration is frequently seen as the preferred option, as wellas the advantages and disadvantages of arbitration, are outlined in further detail below.Why Do Parties to a Contract Select Arbitration?In general, the decision to use arbitration to resolve disputes, rather than the courts, ismade at the time the parties enter into a contract. In the event that arbitration is selectedas the preferred dispute resolution method, an arbitration clause is inserted into thecontract requiring recourse to arbitration rather than civil proceedings in the event of adispute.The preference for arbitration can be based on a number of factors, including thefollowing:
The parties are able to define their own dispute-resolution process.In many commercial contracts, this process includes forms of Alternative DisputeResolution (ADR), such as informal or formal mediation, that can be used to resolvedisagreements before they get to arbitration. The result, in many cases, is amutually-agreeable dispute resolution mechanism that is arguably more flexible andmore efficient than having to resort to the courts where the parties in a commercialrelationship need the intervention of a third party to resolve an issue that has arisen.
The parties can select who will hear their dispute.The parties involved in a dispute over a commercial contract can select an arbitrator 

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