The defendants brought a motion under the Courts of Justice Act and Rule 21.01(3)(a) of the Rules of Civil Procedure seeking a stay of a wrongful dismissal action in favour of arbitration pursuant to an arbitration clause in the employment contract.
The plaintiff argued the contract containing the arbitration clause was void for lack of consideration because it was signed years after the employment relationship began.
The court held that under the Arbitration Act, 1991, arbitration agreements are severable from the main contract and that arbitral tribunals have jurisdiction to determine questions relating to the validity of the agreement.
The court found the dispute clearly fell within the scope of the arbitration clause and exercised its discretion to stay the action so that the arbitration panel could determine the issues, including jurisdiction.