Part 43 published on 01/09/13
Court action respecting building deficiencies stayed pending the results of the arbitration under the National Home Warranty Certificate
The condominium corporation had started this action against the developer and others involved in the original construction, respecting alleged building deficiencies. The condominium corporation had also submitted a request for arbitration pursuant to the arbitration clause in the National Home Warranty Limited Construction Warranty Certificate.
The developer and the National Home Warranty Program had applied to the Master for an order that the court action be stayed because of the requested arbitration under the National Home Warranty Certificate. The Master granted the stay on a temporary basis, until conclusion of the arbitration. The developer and the National Home Warranty Program appealed the Master’s decision, arguing that the stay should be permanent. The appeal was dismissed. The Appeal Court said:
Once the arbitration has been concluded, the parties will know what matters have been decided by the Arbitrator and what matters, if any, have not. The Applicants/Defendants may then be in a position to seek summary dismissal of the action, on the basis that all matters and issues involving them have been concluded by the decision of the Arbitrator.
Alternatively, the Court may be called upon to make decisions as to what matters have been decided by arbitration, and what matters, if any, remain alive in the action.