Peter Balasubramanian

The appellant builder appealed a motion judge's decision refusing to stay a negligence claim in favour of arbitration.

The Court of Appeal dismissed the appeal, agreeing with the motion judge that the arbitration clause did not encompass claims in negligence.

Furthermore, because the homeowner's claim involved other parties not bound by the arbitration agreement, the motion judge properly exercised his discretion under s. 7(5) of the Arbitration Act, 1991 to refuse a partial stay to avoid a multiplicity of proceedings.

Under s. 7(6) of the Act, this discretionary decision was unappealable.

The Crown appealed a motions judge's decision refusing leave to amend its statement of defence and counterclaim in a breach of contract action regarding a software development project.

The Crown sought to add claims for negligent misrepresentation, professional negligence, and conspiracy against the plaintiff, and to add two related foreign corporate entities as defendants by counterclaim.

The Court of Appeal allowed the appeal, finding that the motions judge erred in concluding the tort claims were barred by the contract's entire agreement clause and in applying a 'presumptive refusal' rather than 'presumptive approval' test for amending pleadings.