James R. Caskey

The defendants moved for a stay of an action concerning approximately $35 million in reserve funds retained from Casino Rama revenues.

The plaintiff alleged that maintaining the reserves breached limits imposed under a later revenue-sharing agreement, while the defendants argued the dispute arose under an earlier agreement that required arbitration.

The court considered the competence-competence principle and jurisprudence directing courts to defer to arbitration where it is arguable that a dispute falls within an arbitration clause.

Because the dispute arguably arose under the earlier contract incorporating arbitration provisions, the court held that the matter should proceed to arbitration.

The action was therefore stayed pending determination by an arbitrator of whether the dispute falls within the arbitration agreement.

The moving parties sought a stay of an arbitration proceeding pending appeals from arbitration panel decisions concerning jurisdiction and party participation.

The dispute arose from an agreement granting the respondent First Nations partnership a right to have a nominee appointed to the board of the Ontario Lottery and Gaming Corporation.

The moving parties argued the arbitration panel lacked jurisdiction due to the Crown prerogative over appointments and that the exclusion of the corporation from the arbitration violated natural justice.

Applying the tripartite test for a stay from RJR‑MacDonald, the court found serious issues on appeal regarding jurisdiction, irreparable harm to the public interest if arbitration proceeded prematurely, and that the balance of convenience favoured the moving parties.

The court therefore stayed the arbitration pending determination of the appeals.