Stokes-Stephens Oil Co. v. McNaught

Stokes-Stephens Oil Co. v. McNaught

The arbitration clause was sufficiently broad in scope to encompass the disputes pleaded, including the question of arbitrability; therefore the parties intended arbitrators to decide those questions and the court must grant a stay and leave the matters to arbitration. The temporal phrase "at any time during the prosecution of the work or after the completion thereof" refers to time and does not limit the clause to situations where the work is actively being prosecuted.

Citation
(1918) 57 SCR 549
Parties
Appellant Plaintiff: Stokes-Stephens Oil Company; Respondent Defendant: Joseph Young McNaught
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
25 March 1918
Procedural Posture
Contract Arbitration / Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Alberta
Outcome
Appeal dismissed; order of the Appellate Division affirmed; stay of action granted.
Legal Topics
Stay of Proceedings, Arbitrability, Construction of Arbitration Clause, Enforcement of Arbitration Award, Scope of Arbitration Agreement
Source Language
English
Contract Arbitration Civil Procedure Stay of Proceedings Arbitrability Construction of Arbitration Clause Enforcement of Arbitration Award Scope of Arbitration Agreement

Case Brief

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Parties

Stokes-Stephens Oil Company

Appellant Plaintiff

Joseph Young McNaught

Respondent Defendant

Procedural Posture

Contract Arbitration / Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Alberta

Legal Issues

  1. 1 Whether the arbitration clause encompassed the disputes pleaded in the action
  2. 2 Whether the question of arbitrability (i.e. whether the disputes fall within the arbitration clause) is for the arbitrators or for the court
  3. 3 Whether a stay of proceedings should be granted under the Alberta Arbitration Act

Ratio Decidendi

The arbitration clause was sufficiently broad in scope to encompass the disputes pleaded, including the question of arbitrability; therefore the parties intended arbitrators to decide those questions and the court must grant a stay and leave the matters to arbitration. The temporal phrase "at any time during the prosecution of the work or after the completion thereof" refers to time and does not limit the clause to situations where the work is actively being prosecuted.

Court Disposition

Appeal dismissed; order of the Appellate Division affirmed; stay of action granted.

Orders

  • Stay of the plaintiff's action granted pursuant to the Alberta Arbitration Act
  • Order of the Appellate Division of the Supreme Court of Alberta affirmed