Secure Solutions Inc. v. Smiths Detection Toronto Ltd.

Secure Solutions Inc. v. Smiths Detection Toronto Ltd.

There was no arguable arbitration clause in effect for the 2009-2010 period; written arbitration clauses in earlier expired contracts did not bind the parties and an implied oral arbitration agreement could not meet the statutory writing requirement (s.5(3)); therefore the motion judge did not err in refusing to...

Source-derived case information.

Citation
2011 ONCA 337
Parties
Plaintiff/respondent: Secure Solutions Inc.; Defendant/appellant: Smiths Detection Toronto Ltd.; Defendant/appellant: Smiths Detection Montreal Inc.
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
3 May 2011
Procedural Posture
Civil / Appeal From Motion Judge's Order Declining to Stay Proceedings
Outcome
Appeal dismissed
Legal Topics
Existence and Enforceability of Arbitration Clause, Stay of Proceedings in Favour of Arbitration, Requirement for Arbitration Agreement to Be in Writing (s.5(3) International Commercial Arbitration Act), Forum Conveniens/forum Selection, Breach of Fiduciary Duty, Unjust Enrichment, Partial Stays of Proceedings
Source Language
english
Arbitration Civil Procedure Contract Law Commercial Law Equity and Restitution Existence and Enforceability of Arbitration Clause Stay of Proceedings in Favour of Arbitration Requirement for Arbitration Agreement to Be in Writing (s.5(3) International Commercial Arbitration Act) +4 more

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Parties

Secure Solutions Inc.

Plaintiff/respondent

Smiths Detection Toronto Ltd.

Defendant/appellant

Smiths Detection Montreal Inc.

Defendant/appellant

Procedural Posture

Civil / Appeal From Motion Judge's Order Declining to Stay Proceedings

Legal Issues

  1. 1 Whether an arbitration clause existed in the contract governing disputes in 2009-2010
  2. 2 Whether any arbitration agreement satisfied the written requirement of s.5(3) of the International Commercial Arbitration Act
  3. 3 Whether the pleaded causes of action fell within any arbitration clause

Ratio Decidendi

There was no arguable arbitration clause in effect for the 2009-2010 period; written arbitration clauses in earlier expired contracts did not bind the parties and an implied oral arbitration agreement could not meet the statutory writing requirement (s.5(3)); therefore the motion judge did not err in refusing to stay the proceedings and the appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Costs to respondent fixed at $15,000 inclusive of disbursements and applicable taxes