The defendant former employer brought a motion to stay the plaintiff's wrongful dismissal and breach of contract action pursuant to s. 7(1) of the Arbitration Act, 1991.
The plaintiff opposed the stay, arguing the arbitration clause was invalid, the oppression claim was not arbitrable, and the defendant had delayed unduly by filing a statement of defence and counterclaim before raising the arbitration clause.
The court applied the five-part framework from Haas v. Gunasekaram and found that the dispute arguably fell within the broad arbitration clause.
The court rejected the plaintiff's arguments under s. 7(2), noting the defendant's counsel only discovered the arbitration clause during documentary discovery and raised it immediately.
The motion to stay the action was granted.