Uber Technologies Inc. v. Heller

Uber Technologies Inc. v. Heller

Appeal dismissed. Applying Dell/Seidel framework and Ontario law the court held the Arbitration Act (not the ICAA) governs; courts should refer jurisdictional challenges to arbitrators except for pure legal questions, documentary issues susceptible to superficial review, or where accessibility concerns create a real prospect the arbitrator will never resolve the challenge; here accessibility (US$14,500 ICC initiation fees close to Heller’s annual income) and standard‑form adhesion contract established inequality of bargaining power and an improvident bargain such that the arbitration clause is unconscionable and therefore invalid; accordingly the stay was refused and action may proceed in...

Citation
2020 SCC 16
Parties
Appellant: Uber Technologies Inc.; Appellant: Uber Canada, Inc.; Appellant: Uber B.V.; Appellant: Rasier Operations B.V.; Respondent: David Heller; Intervener: Attorney General of Ontario; Intervener: Young Canadian Arbitration Practitioners; Intervener: Arbitration Place; Intervener: Don Valley Community Legal Services; Intervener: Canadian Federation of Independent Business; Intervener: Samuelson-Glushko Canadian Internet Policy and Public Interest Clinic; Intervener: Income Security Advocacy Centre; Intervener: Parkdale Community Legal Services; Intervener: United Food and Commercial Workers Canada; Intervener: Workers’ Health and Safety Legal Clinic; Intervener: Montreal Economic Institute; Intervener: Canadian American Bar Association; Intervener: Chartered Institute of Arbitrators (Canada) Inc.; Intervener: Toronto Commercial Arbitration Society; Intervener: Canadian Chamber of Commerce; Intervener: International Chamber of Commerce; Intervener: Consumers Council of Canada; Intervener: Community Legal Assistance Society; Intervener: ADR Chambers Inc.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
26 June 2020
Procedural Posture
Appeal Concerning Stay Motion Under Arbitration Clauses; Class Proceeding Under Employment Standards Act / Supreme Court of Canada Judgment on Appeal From Ontario Court of Appeal; Motion to Stay in Favour of Arbitration in Netherlands
Outcome
Appeal dismissed; arbitration clause found invalid (majority) and stay refused; costs awarded to respondent
Legal Topics
Unconscionability, Competence‑competence (arbitrator Jurisdiction), Choice of Law, Forum/seat of Arbitration, Arbitration Clause Severance, Statutory Interpretation of Arbitration Act and International Commercial Arbitration Act, Access to Justice
Source Language
English
Contracts Arbitration Law Employment Law Public Policy Procedural Law Unconscionability Competence‑competence (arbitrator Jurisdiction) Choice of Law +4 more

Case Brief

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Parties

Uber Technologies Inc.

Appellant

Uber Canada, Inc.

Appellant

Uber B.V.

Appellant

Rasier Operations B.V.

Appellant

David Heller

Respondent

Attorney General of Ontario

Intervener

Young Canadian Arbitration Practitioners

Intervener

Arbitration Place

Intervener

Don Valley Community Legal Services

Intervener

Canadian Federation of Independent Business

Intervener

Samuelson-Glushko Canadian Internet Policy and Public Interest Clinic

Intervener

Income Security Advocacy Centre

Intervener

Parkdale Community Legal Services

Intervener

United Food and Commercial Workers Canada

Intervener

Workers’ Health and Safety Legal Clinic

Intervener

Montreal Economic Institute

Intervener

Canadian American Bar Association

Intervener

Chartered Institute of Arbitrators (Canada) Inc.

Intervener

Toronto Commercial Arbitration Society

Intervener

Canadian Chamber of Commerce

Intervener

International Chamber of Commerce

Intervener

Consumers Council of Canada

Intervener

Community Legal Assistance Society

Intervener

ADR Chambers Inc.

Intervener

Procedural Posture

Appeal Concerning Stay Motion Under Arbitration Clauses; Class Proceeding Under Employment Standards Act / Supreme Court of Canada Judgment on Appeal From Ontario Court of Appeal; Motion to Stay in Favour of Arbitration in Netherlands

Legal Issues

  1. 1 Which statute governs (International Commercial Arbitration Act/Model Law v. Ontario Arbitration Act)
  2. 2 Whether the court or the arbitrator should decide validity of the arbitration agreement
  3. 3 Whether the arbitration clause is unconscionable

Ratio Decidendi

Appeal dismissed. Applying Dell/Seidel framework and Ontario law the court held the Arbitration Act (not the ICAA) governs; courts should refer jurisdictional challenges to arbitrators except for pure legal questions, documentary issues susceptible to superficial review, or where accessibility concerns create a real prospect the arbitrator will never resolve the challenge; here accessibility (US$14,500 ICC initiation fees close to Heller’s annual income) and standard‑form adhesion contract established inequality of bargaining power and an improvident bargain such that the arbitration clause is unconscionable and therefore invalid; accordingly the stay was refused and action may proceed in...

Court Disposition

Appeal dismissed; arbitration clause found invalid (majority) and stay refused; costs awarded to respondent

Orders

  • Appeal dismissed with costs to the respondent throughout
  • Order that the arbitration clause is invalid and the motion to stay proceedings is denied (no stay granted)