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Appeal ruling solidifies support for arbitration

Thursday, December 08, 2016 @ 7:00 PM | By Brad Berg and Max Shapiro

In Haas v. Gunasekaram 2016 ONCA 744, the Court of Appeal for Ontario clarified the test for staying court proceedings under s. 7(1) of the Ontario Arbitration Act and emphasized that courts should enforce arbitration agreements where possible. In so doing, it reversed a lower court’s decision and stayed the plaintiff’s action.

By way of background, the plaintiff entered into a shareholders’ agreement relating to a Toronto restaurant and invested $200,000. The restaurant failed and the plaintiff launched an action against the defendants. The plaintiff alleged...