The defendant, Ericsson Canada Inc., brought a motion to dismiss or, alternatively, stay the plaintiff's action and compel arbitration of a dispute concerning unpaid commissions under a Sales Incentive Plan (SIP).
The plaintiff, Dahl Morrison, argued the arbitration clause was not binding, that Ontario law governed his employment, and that arbitration in Texas would be inconvenient and expensive, especially given other claims for wrongful dismissal.
The court found the SIP's arbitration clause to be clear and mandatory, requiring disputes arising from the plan to be settled by final and binding arbitration in Dallas, Texas.
Citing Section 7 of the Arbitration Act, 1991, and Supreme Court of Canada jurisprudence, the court ruled that the existence of a valid arbitration agreement ousted the court's jurisdiction.
The motion was granted, the Ontario action was stayed, and the plaintiff was directed to proceed with arbitration.