The defendants moved to stay or dismiss the action, arguing the causes of action were subject to an arbitration agreement.
The plaintiff contended the arbitration clause was invalid and unenforceable due to contracting out of the Employment Standards Act, inclusion of a non-party (Catalyst), and unconscionability.
The court dismissed the motion, finding the arbitration agreement invalid because it illegally contracted out of the ESA's complaint investigation process, which is an employment standard.
The court also noted that separating the issues for Catalyst was not reasonable.