Part 48 published on 01/11/14
Despite claim for oppression, mandatory mediation and arbitration may apply to dispute respecting shared facilities agreement
The three residential condominiums were parties to a shared facilities agreement (SFA). MTCC 965 sued the other two corporations for alleged failures under the terms of the SFA and for oppression under s. 135 of the Condominium Act, 1998.
The two defendant corporations moved for a stay of the court action, on the grounds that the dispute should be mediated and then arbitrated, pursuant to a provision in the SFA and pursuant to s. 132 of the Condominium Act, 1998. The Court granted the requested stay. The Court said:
Furthermore, even if the plaintiff is correct and oppression remedy disputes are not arbitrable, an arbitral tribunal considering its jurisdiction over the present dispute would doubtless want to take into account what the true nature of the dispute between the parties consists of. Is the dispute in fact an oppression case or is it in pith and substance a dispute arising “under or in relation to” the SFA?
…
For the foregoing reasons, I am of the view that it is at least arguable that the dispute between the parties is arbitrable and that a stay of proceedings should be ordered.