The parties, two dentists, practised together under a Cost Sharing Agreement containing an arbitration clause.
After their relationship broke down, the respondent sued for breach of contract, conversion, and malicious prosecution.
The appellant moved for a stay of proceedings under s. 7 of the Arbitration Act, which the motions judge dismissed on the basis that the malicious prosecution claim fell outside the arbitration agreement and the matters could not easily be separated.
The Court of Appeal held that it had jurisdiction to hear the appeal because a finding that a dispute falls outside an arbitration agreement is not barred by s. 7(6).
The Court upheld the motions judge's decision, finding no error in the refusal to grant a partial stay.