Contracts often contain both mandatory arbitration clauses and
jurisdictional clauses that specify which courts have jurisdiction.
These clauses need to be drafted carefully so that there is no
conflict and no ambiguity created as to whether arbitration is the
only dispute resolution procedure.
Two cases in Ontario in the past year, one in the Superior Court
of Justice and one in the Court of Appeal of Ontario, have
considered contracts that contain both clauses and the proper
interpretation to be given to them.
In Graves v. Correactology Healthcare Group Inc.[i], the plaintiffs entered
into three agreements when they enrolled in a program at the
Canadian Institute of Correactology: an Enrolment Agreement, a
Licence Agreement and a Confidentiality Agreement. A dispute arose
and the plaintiffs sued, alleging, among other things, causes of
action for fraudulent misrepresentation, conspiracy, restraint of
trade and breach of contract. The plaintiffs alleged that
