Arguable that claims fell within terms of very broad arbitration clause

Ontario civil | Arbitration

STAY OF PROCEEDINGS

Arguable that claims fell within terms of very broad arbitration clause

Plaintiff was Italian corporation that provided commissary, or meal delivery, services for defendant corporation in Afghanistan pursuant to March 2013 services agreement. Corporation was Ontario corporation. Corporation terminated services agreement on June 7, 2013. On July 17, 2013, plaintiff commenced action in Ontario against corporation and certain of its directors, officers and employees, seeking damages for termination of services agreement and other relief. Plaintiff then commenced application against corporation for order that arbitration clause contained in services agreement did not survive termination of services agreement. Corporation moved for order staying action pending arbitration of dispute between parties. Motion granted. Review of amended statement of claim disclosed that it was certainly arguable that claims asserted by plaintiff against corporation in action fell within terms of very broad arbitration clause, which covered any dispute or controversy between parties arising under, out of, in connection with or relation to services agreement. Under services agreement, it was unclear whether termination affected or impaired party’s right to enforce rights and remedies contained in agreement. That issue was best left to arbitrator. Claims against personal defendants concerned performance and termination of services agreement. Action was stayed against all defendants pending arbitration between plaintiff and corporation. Plaintiff’s application was dismissed.
Ciano Trading & Services C.T. &. S.R.L. v. Skylink Aviation Inc. (Mar. 17, 2014, Ont. S.C.J. [Commercial List], D.M. Brown J., File No. CV-13-10273-00CL, CV-13-484963) 238 A.C.W.S. (3d) 539.

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