The parties, former accounting partners, entered into an arbitration agreement to resolve a dispute over the final accounting for the winding-up of their partnership.
The respondent later commenced a court action regarding the same issues, arguing the arbitration agreement was invalid due to a lack of consensus ad idem.
The motion judge agreed and refused to stay the action.
On appeal, the Court of Appeal found the arbitration agreement was clear, unambiguous, and validly executed with the assistance of counsel.
The court held that none of the exceptions in s. 7(2) of the Arbitration Act applied, and therefore a stay of the court proceeding was mandatory under s. 7(1).
The appeal was allowed and the action stayed.