Tulloch v. Amerispec Home Inspection Services

Tulloch v. Amerispec Home Inspection Services

The arbitration clause insofar as it purports to exclude or limit the jurisdiction of the Small Claims Court is void under s.14(1) of the Small Claims Court Act and must be severed under s.14(2); accordingly the Court retains jurisdiction to hear the claim and will not grant a stay in favour of arbitration.

Citation
2006 NSSM 48
Parties
Claimant: Shelly Tulloch; Claimant: Innis Tulloch; Defendant: Amerispec Home Inspection Services
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
21 April 2006
Procedural Posture
Small Claims Court / Interlocutory – Jurisdictional Challenge to Arbitration Clause Following Written Submissions
Outcome
Arbitration clause declared void insofar as it purports to exclude or limit Small Claims Court jurisdiction and severed; Court retains jurisdiction; request for stay denied.
Legal Topics
Arbitration Clause, Jurisdiction, Severance, Stay of Proceedings, Small Claims Jurisdiction, Enforceability of Agreements
Source Language
English
Contract Law Civil Procedure Arbitration Law Statutory Interpretation Arbitration Clause Jurisdiction Severance Stay of Proceedings +2 more

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Parties

Shelly Tulloch

Claimant

Innis Tulloch

Claimant

Amerispec Home Inspection Services

Defendant

Procedural Posture

Small Claims Court / Interlocutory – Jurisdictional Challenge to Arbitration Clause Following Written Submissions

Legal Issues

  1. 1 Whether the arbitration clause in the parties' contract ousts or limits the jurisdiction of the Small Claims Court
  2. 2 Whether the Small Claims Court can stay proceedings in favour of arbitration
  3. 3 Whether the arbitration clause is void or severable under the Small Claims Court Act s.14

Ratio Decidendi

The arbitration clause insofar as it purports to exclude or limit the jurisdiction of the Small Claims Court is void under s.14(1) of the Small Claims Court Act and must be severed under s.14(2); accordingly the Court retains jurisdiction to hear the claim and will not grant a stay in favour of arbitration.

Court Disposition

Arbitration clause declared void insofar as it purports to exclude or limit Small Claims Court jurisdiction and severed; Court retains jurisdiction; request for stay denied.

Orders

  • Arbitration clause in the parties' contract is void and severed pursuant to s.14(1) and s.14(2) of the Small Claims Court Act.
  • Defendant's request for a stay of proceedings in favour of arbitration is dismissed.