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ARTICLE · 18 JUNE 2024

How (Not) To Inadvertently Waive Your Right To Arbitrate

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The recent Ontario Court of Appeal decision in RH20 North America Inc v Bergmann, 2024 ONCA 445 serves as useful reminder that a party can inadvertently waive its right to arbitrate...

CanadaLitigation, Mediation & Arbitration

The recent Ontario Court of Appeal decision in RH20 North America Inc v Bergmann, 2024 ONCA 445 serves as useful reminder that a party can inadvertently waive its right to arbitrate a dispute if the party takes a step in the wrong direction. Specifically, a party subject to an arbitration agreement which seeks judicial assistance on a substantive aspect of a dispute before seeking a stay in favour of arbitration will waive its right to arbitrate the dispute.

Background

The plaintiffs, RH20 North America Inc (RH20) and Unit Precast (Breslau) Ltd, commenced a lawsuit against various defendants alleging that the defendants had wrongfully (1) terminated a License Agreement, (2) conspired to set up a competing business, and (3) taken confidential information.

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