National Gypsum Co. v. Northern Sales Ltd.

National Gypsum Co. v. Northern Sales Ltd.

Majority: The Exchequer Court had jurisdiction ratione materiae and loci under the Admiralty Act; arbitration clause is procedural and governed by the lex fori (Quebec) in the absence of Admiralty Rules; under Quebec law and Code of Civil Procedure art.94(3) the clause is void as against public policy and cannot oust the Court's jurisdiction or bar the action; therefore the motion to dismiss or stay was rightly dismissed.

Citation
[1964] SCR 144
Parties
Defendant/appellant: National Gypsum Company Inc.; Plaintiff/respondent: Northern Sales Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
16 December 1963
Procedural Posture
Admiralty/appeal to Supreme Court of Canada From Exchequer Court (quebec Admiralty District) / Appeal From Motion to Dismiss or Stay Proceedings
Outcome
Appeal dismissed (majority); Cartwright and Ritchie JJ. dissenting
Legal Topics
Arbitration Clause Enforcement, Jurisdiction Ratione Materiae and Loci, Lex Fori Vs Lex Contractus, Public Policy, Stay of Proceedings, Lis Pendens
Source Language
English
Admiralty Law Arbitration Private International Law Civil Procedure Shipping/transportation Arbitration Clause Enforcement Jurisdiction Ratione Materiae and Loci Lex Fori Vs Lex Contractus +3 more

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Parties

National Gypsum Company Inc.

Defendant/appellant

Northern Sales Limited

Plaintiff/respondent

Procedural Posture

Admiralty/appeal to Supreme Court of Canada From Exchequer Court (quebec Admiralty District) / Appeal From Motion to Dismiss or Stay Proceedings

Legal Issues

  1. 1 Whether Exchequer Court on Admiralty side had jurisdiction to hear action despite arbitration clause
  2. 2 Whether arbitration clause is matter of substance or procedure
  3. 3 Whether arbitration clause is void as against public policy under Quebec law and Code of Civil Procedure art.94(3)

Ratio Decidendi

Majority: The Exchequer Court had jurisdiction ratione materiae and loci under the Admiralty Act; arbitration clause is procedural and governed by the lex fori (Quebec) in the absence of Admiralty Rules; under Quebec law and Code of Civil Procedure art.94(3) the clause is void as against public policy and cannot oust the Court's jurisdiction or bar the action; therefore the motion to dismiss or stay was rightly dismissed.

Court Disposition

Appeal dismissed (majority); Cartwright and Ritchie JJ. dissenting

Orders

  • Appeal dismissed with costs
  • Record returned to the Exchequer Court (Quebec Admiralty District) for resumption of proceedings