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ARTICLE · 17 JUNE 2014

Handle With Care: Ontario Court Finds Boilerplate Arbitration Clause Doesn’t Apply

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A recent decision of the Ontario Superior Court of Justice highlights the importance of drafting arbitration clauses with care.

CanadaLitigation, Mediation & Arbitration
Bradley Berg
Bradley Berg
Max Shapiro
Max Shapiro
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A recent decision of the Ontario Superior Court of Justice highlights the importance of drafting arbitration clauses with care. In 2156775 Ontario Inc. v. Just Energy, the court dismissed a motion to stay an action in favour of arbitration, finding that the dispute was not captured by the arbitration clause.

FACTS

The plaintiff customer allegedly entered into contracts with the defendant Just Energy in 2008 and 2010. The 2008 contract did not include an arbitration clause, but "standard form" terms appended to the 2010 contract did include an arbitration clause that provided, in part:

"Dispute Resolution, Binding Arbitration. Customer may contact Just Energy with regard to a concern or dispute under this Agreement. . . . Both parties will, in good faith, use commercially reasonable efforts to resolve a dispute. If not resolved within 45 days, such dispute will be referred to and finally resolved by binding arbitration pursuant to Governing Law, before a single

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