The appellant employee allegedly drove the employer's leased vehicle with a flat tire, causing damage.
The employer brought a civil action for negligence to recover repair costs.
The appellant moved to strike the claim, arguing the dispute arose out of the collective agreement and was subject to exclusive arbitration under the Public Service Labour Relations Act.
The Supreme Court of Canada allowed the appeal, applying the concurrent decision in Weber v. Ontario Hydro.
The Court held that the essential character of the dispute concerned the preservation of employer property, which inferentially fell under the collective agreement, thereby depriving the courts of jurisdiction.