JH Whittaker & Sons Limited (Whittaker's) brought a motion to stay an action commenced by Husky Food Importers & Distributors Ltd. (Husky) and to refer Husky's claims to arbitration in New Zealand.
The motion was brought pursuant to the International Commercial Arbitration Act, 2017 and the UNCITRAL Model Law.
Husky argued that no valid arbitration agreement existed or that it was inoperative due to an inconsistency with a non-exclusive jurisdiction clause.
Applying the Haas framework, the court found it arguable that an arbitration agreement existed and that the dispute fell within its scope.
The court determined that the alleged inconsistency was not apparent and that the interpretation of the contract required a thorough review of the factual matrix, which is best left to the arbitrator.
The court also rejected the argument that a multiplicity of proceedings (arbitration against Whittaker's and litigation against another defendant) was a reason to refuse the stay, as the Model Law's stay provision is mandatory.
The motion to stay the action and refer it to arbitration was granted.