The defendant, Karen Pacey, brought a motion to stay a proceeding initiated by Allied Accounting & Tax Services Limited and Allied Associates LLP, arguing that the dispute fell under an arbitration clause in a Shareholders’ Agreement (SA).
The plaintiffs alleged breaches of confidentiality and non-competition provisions in both the SA and a Representative’s Contract, the latter lacking an arbitration clause.
The court found that the SA's arbitration clause was qualified by other provisions explicitly referring to "court" for equitable relief, indicating an exclusion for such disputes from arbitration.
Additionally, the court found that the defendant unduly delayed in bringing the motion for a stay, which would have been a separate ground for refusal.
The motion to stay the proceeding was dismissed.