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ARTICLE · 04 APRIL 2025

Arbitration Clause In Employment Agreement Upheld Despite Related Proceeding

Bishop & McKenzie LLP
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On January 19, 2025, the Court of Appeal of Alberta released its decision, Sivitilli v PesoRama Inc., 2025 ABCA 56, in which the Court upheld an arbitration clause in an employment agreement despite ongoing litigation between the same parties.

CanadaLitigation, Mediation & Arbitration
Megan B. Harris
Megan B. Harris
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On January 19, 2025, the Court of Appeal of Alberta released its decision, Sivitilli v PesoRama Inc., 2025 ABCA 56, in which the Court upheld an arbitration clause in an employment agreement despite ongoing litigation between the same parties.

In this decision, the Plaintiff, Edward Sivitilli ("Sivitilli"), was the CEO of PesoRama Inc. ("PesoRama") until August 2021, when he was dismissed from his employment. Sivitilli's employment contract with PesoRama included an arbitration clause for dealing with disputes arising from the employment relationship. After his dismissal, Sivitilli retained legal counsel and advised PesoRama that he intended to pursue arbitration, which was consistent with the employment agreement.

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