The defendant, Metropolitan Toronto Condominium Corporation No. 1255 (MTCC 1255), brought a motion to stay an action commenced by 23 St. Thomas Inc. and Metropolitan Toronto Condominium Corporation No. 1271 (MTCC 1271) in favour of mandatory arbitration under the Condominium Act, 1998.
The court found that the pith and substance of MTCC 1271's claims related to the interpretation and application of the Reciprocal Agreement and Indemnity Agreement, making them arbitrable.
Consequently, MTCC 1271's claims were stayed.
However, the court declined to stay 23 St. Thomas Inc.'s claims, as it was not a party to the agreements and there was insufficient evidence to pierce the corporate veil.
The motion was granted in part, with an arbitrator appointed for the arbitrable claims.