23/06/2017 – Jurisdiction Manitoba
Part 59 published on 01/09/2017
Dispute between condominium corporation and manager to be decided by arbitration
The condominium corporation had terminated its management contract, allegedly for “cause”. The manager considered the termination to be a breach of contract and withheld an amount equal to the full management fee through to the end of the contract. The condominium corporation, in turn, brought a Court claim against the manager for damages, including recovery of the management fee; and also obtained a garnishment order under section 61 of the Court of Queen’s Bench Act, which required the manager to pay the disputed management fees into Court.
The manager asserted that the Court claim should be stayed because the management contract contained a provision for resolution of disputes by arbitration. The Court agreed. However, the Court declined to stay the garnishment. The Court said:
To obtain an Order for Garnishment before Judgment, pursuant to s. 61 of The Court of Queen’s Bench Act, one must commence an action and meet the necessary requirements of Queen’s Bench Rule 46.14. Doing so in the context of a dispute to be decided by arbitration will give rise to a multiplicity of proceedings, which generally speaking is to be avoided. I am satisfied, however, that dual proceedings in this context are a necessary component of the application of s. 8(1) of the (Arbitration Act), as would be the case when one is seeking any special remedy from the Court in an arbitration context, including an injunction in a labour matter.
Winnipeg Condominium Corp. No. 75 v Imperial Properties Corp.