The appellants appealed a decision staying their action against the respondents on the basis that the dispute was subject to an arbitration clause in a franchise agreement.
The appellants argued the franchise agreement was void ab initio, meaning the arbitration clause was not triggered.
The Court of Appeal dismissed the appeal, finding that the argument was not raised before the motion judge and was undercut by the factual record.
The Court agreed with the motion judge that the arbitration agreement was broad enough to encompass disputes regarding the validity of the franchise agreement itself.
