Best Source Inc. v. International Industries Corporation

Best Source Inc. v. International Industries Corporation

The motion judge correctly found that the bundle of rights assigned to the appellant included both the JVMA and the ISAA, that the appellant assumed the ISAA obligations including its arbitration clause by standing in the position of Headwaters and by conduct, and that there was no palpable and overriding error in those findings; the appeal is dismissed.

Citation
2017 ONCA 411
Parties
Plaintiff (appellant): Best Source Inc.; Defendant (respondent): International Industries Corporation; Defendant (respondent): David Cloer
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
23 May 2017
Procedural Posture
Collection (civil Contract/arbitration) / Appeal From Motion Judge Order Staying Action in Favour of Arbitration
Outcome
Appeal dismissed; motion judge’s stay to arbitration upheld
Legal Topics
Assignment of Contractual Rights, Agency Agreement, Stay for Arbitration, Interpretation of Commercial Agreements
Source Language
English
Civil Contract Arbitration Commercial Law Assignment of Contractual Rights Agency Agreement Stay for Arbitration Interpretation of Commercial Agreements

Case Brief

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Parties

Best Source Inc.

Plaintiff (appellant)

International Industries Corporation

Defendant (respondent)

David Cloer

Defendant (respondent)

Procedural Posture

Collection (civil Contract/arbitration) / Appeal From Motion Judge Order Staying Action in Favour of Arbitration

Legal Issues

  1. 1 Whether the assignment to the appellant of Headwaters’ rights was limited to the JVMA or included the ISAA and its arbitration clause
  2. 2 Whether the parties’ conduct established that the ISAA was in effect between appellant and IIC
  3. 3 Whether the motion judge committed palpable and overriding error or an error of law in his factual findings and contractual interpretation

Ratio Decidendi

The motion judge correctly found that the bundle of rights assigned to the appellant included both the JVMA and the ISAA, that the appellant assumed the ISAA obligations including its arbitration clause by standing in the position of Headwaters and by conduct, and that there was no palpable and overriding error in those findings; the appeal is dismissed.

Court Disposition

Appeal dismissed; motion judge’s stay to arbitration upheld

Orders

  • Stay of the action to arbitration in South Carolina upheld
  • Appeal dismissed