D. Geoffrey G. Cowper

A class action was brought against a telecommunications provider on behalf of approximately two million Ontario residents who alleged they were overcharged through an undisclosed call-rounding practice.

The class consisted of both consumers (protected from arbitration by the Consumer Protection Act, 2002) and non-consumer business customers bound by a mandatory arbitration clause in standard form contracts.

The majority held that s. 7(5) of the Arbitration Act, 1991 does not grant the court discretion to refuse to stay claims that are dealt with in an arbitration agreement, and that the first precondition under s. 7(5)(a) was not met because the sole matter in dispute — alleged overbilling — was dealt with in the arbitration agreements.

The business customer claims were therefore stayed, as only the consumers benefited from the Consumer Protection Act's override of the arbitration clause.

Four judges dissented, holding that s. 7(5) confers a discretion to allow the entire proceeding including arbitrable claims to continue in court where it would be unreasonable to separate them.

The appellant used funds advanced by the respondent to purchase property in his own name.

The respondent claimed a beneficial interest via purchase money resulting trust.

The Supreme Court declined to abandon the purchase money resulting trust doctrine in favour of unjust enrichment, holding that the doctrine provides certainty and predictability.

The Court found the trial judge correctly concluded the presumption of resulting trust was rebutted, as the respondent's contribution matched the exact amount of tax arrears it owed to a third party, and the respondent's own fax stated the funds were advanced without conditions or requirements.