A municipality sought a declaration that it was not bound by an arbitration clause in a 1993 participation agreement governing a landfill operation, arguing that an amended environmental compliance approval issued in 2019 voided the agreement.
The respondent municipality moved to stay the application in favour of arbitration.
The court applied the two-part framework from Peace River Hydro Partners v. Petrowest Corp. and found that the technical prerequisites for a mandatory stay were met and that neither of the exceptions raised by the applicant—undue delay or suitability for summary judgment—applied on a clear case standard.
The court granted the stay and ordered the matter to arbitration.