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Case 357: MAL: 5, 8(1), 16
Canada: British Columbia Supreme Court (Davies J.)
November 17, 1995
Continental Commercial Systems Corp. v. Davies Telecheck International, Inc.
Original in English
Published in English: [1995] B.C.J. No. 2440
The parties entered into franchise and licensing agreements that referred disputes arising under the agreements to arbitration. A dispute went to arbitration and the parties did not agree on accounts submitted by the respondent for expenses of persons attending the arbitration proceedings. The respondent sought to recover these costs in court. In seeking to stay the action, the applicant alleged the stay was mandatory by section 8 of the International Commercial Arbitration Act. To this, the respondent argued the agreement to pay expenses did not fall within the scope of section 8 as it was independent of the contracts.
The Supreme Court held that the scope of the agreements is determined by the arbitration tribunal. It concluded it was not clear the issues fell outside the terms of the arbitration agreement and stayed the action.
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