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Case 184: MAL 8(1)
Canada: Federal Court of Canada (Trial Division) (Strayer J.)
22 March 1994
Continental Resources Inc. v. The East Asiatic Company (Canada) Inc.
Original in English
Unpublished
The court was satisfied that there was an arbitration agreement within the meaning of
Article 8 of the Commercial Arbitration Act, Revised Statutes of Canada, 1985, 2nd
Supplement, Chapter 17, which enacts Article 8(1) MAL, and that, therefore, the matter
before it must be referred to arbitration in New York as provided in the charter-party
between the litigants. As no statement of defence had been filed by the defendants, they
had not submitted any statement on the substance of the dispute to the court so as to
justify the refusal of a stay of proceedings.
The court held that there was insufficient evidence that a new agreement had been
reached between the parties for arbitration in Vancouver. The court also held that if
there was any claim against the defendant vessel, which claim was not precluded by the
agreement to arbitrate, it could be stayed pending the conclusion of the arbitration in
New York. The court found insufficient evidence to warrant granting such a stay. However,
as Article 8 MAL does not address the issue of the terms on which the action before the
court should be disposed of, the court used its discretion to grant the stay on condition
that the defendants did not rely on prescription or on delay as a defence in the
arbitration.
UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW
CASE LAW ON UNCITRAL TEXTS (CLOUT)
Abstracts of cases
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