CLOUT
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In a series of contracts concluded during 1986, Bianchi granted Bilumen the exclusive right to assemble, sell and distribute its products in Canada and the United States. Shortly thereafter, and despite the arbitration clause contained in the contract, Bianchi began judicial proceedings before the Superior Court, claiming damages for breach of contract. The proceedings followed their course, including joint motions for particulars, a demand for a guarantee in respect of the costs of the proceedings and discovery. In March 1990, Bilumen filed a motion for dismissal of the action, pointing to the arbitration clause. Bianchi contested this motion, arguing that Bilumen had tacitly renounced arbitration in view of the various steps undertaken in relation to the judicial proceedings.

Given the general policy favouring arbitration, and particularly article 8 MAL, the Superior Court concluded that the delay in invoking the arbitration clause and the steps undertaken in the judicial proceedings did not amount to renunciation of the arbitral procedure. The Superior Court further stated that the mandatory nature of the provision and the absence of judicial discretion required that the parties be referred to arbitration.

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