Craig Dennis, K.C. and Owen James successful in Court of Appeal concerning effect of an Arbitration Clause

In Tresoro Mining Corporation v. Mercer Gold Corp. (B.C.), 2018 BCCA 160, Craig Dennis, K.C. and Owen James were successful for the appellant in an appeal concerning the effect of an arbitration clause.  The Court of Appeal reversed a decision of the Supreme Court that had refused to lift a stay of proceedings imposed in 2011 pending completion of arbitration proceedings.  The Court of Appeal held that a termination order imposed by an arbitral panel for non-payment of fees does not constitute a determination of an arbitral issue on its merits; as such, it is not an “award” within the meaning of the Arbitration Act.  The Court of Appeal determined that the Supreme Court had erred in law by concluding that the appellant’s claims against individual defendants could be stayed permanently by an order based on an arbitration clause in an agreement to which those defendants were not parties.  The Court of Appeal held that the Supreme Court’s refusal to lift the stay of proceedings amounted to an injustice to the appellant, as it had the effect of foreclosing the appellant’s ability to have claims against the individual defendants determined on their merits.

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