Stella Jones Inc. v. "Mariana" (The)

Stella Jones Inc. v. "Mariana" (The)

Defendants failed to prove a written arbitration agreement within the meaning of Article 7(2) of the Commercial Arbitration Code because the signed booking note did not contain or incorporate the Centrocon clause; therefore the court must refuse to stay proceedings and dismiss the motion to refer to arbitration.

Citation
2001 FCT 1148
Parties
Plaintiff: Stella-Jones Inc.; Plaintiff: AXA Boreal Assurances Inc.; Defendant: Hawknet Ltd.; Defendant: Sunlight Compania Naviera S.A.; Defendant: Sebilan Compania Naviera S.A.; Defendant: The Owners and All Others Interested in the Ship Mariana (Ex "ANEMELI")
Court
Federal Court
Jurisdiction
Canada
Judgment Date
24 October 2001
Procedural Posture
Admiralty/maritime; Commercial Arbitration / Motion to Stay and to Refer Claim to Arbitration (hearing)
Outcome
Motion dismissed with costs.
Legal Topics
Arbitration Clause Enforceability, Formation and Incorporation of Contract Terms, Bill of Lading Terms, Commercial Arbitration Code Articles 7(2) and 8
Source Language
English
Commercial Arbitration Admiralty and Maritime Law Contract Law Arbitration Clause Enforceability Formation and Incorporation of Contract Terms Bill of Lading Terms Commercial Arbitration Code Articles 7(2) and 8

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Parties

Stella-Jones Inc.

Plaintiff

AXA Boreal Assurances Inc.

Plaintiff

Hawknet Ltd.

Defendant

Sunlight Compania Naviera S.A.

Defendant

Sebilan Compania Naviera S.A.

Defendant

The Owners and All Others Interested in the Ship Mariana (Ex "ANEMELI")

Defendant

Procedural Posture

Admiralty/maritime; Commercial Arbitration / Motion to Stay and to Refer Claim to Arbitration (hearing)

Legal Issues

  1. 1 Whether the Centrocon arbitration clause printed as an amendment on the Bill of Lading binds the plaintiff
  2. 2 Whether there was a written arbitration agreement within the meaning of Article 7(2) of the Commercial Arbitration Code
  3. 3 Who bears the burden of proof for existence and enforceability of an arbitration agreement

Ratio Decidendi

Defendants failed to prove a written arbitration agreement within the meaning of Article 7(2) of the Commercial Arbitration Code because the signed booking note did not contain or incorporate the Centrocon clause; therefore the court must refuse to stay proceedings and dismiss the motion to refer to arbitration.

Court Disposition

Motion dismissed with costs.

Orders

  • Motion to stay and to refer to arbitration dismissed.
  • Costs awarded to the plaintiff.