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ARTICLE · 01 JULY 2020

Supreme Court Of Canada Finds Arbitration Clause To Be "Uber" Unconscionable

Blake, Cassels & Graydon LLP
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On June 26, 2020, the Supreme Court of Canada (SCC) released its decision in Uber Technologies Inc. v. Heller.

CanadaLitigation, Mediation & Arbitration
Laura Cundari
Laura Cundari
Andrew Kavanagh
Andrew Kavanagh
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On June 26, 2020, the Supreme Court of Canada (SCC) released its decision in Uber Technologies Inc. v. Heller. The SCC ruled in favour of the plaintiff, allowing him to proceed with a class-action lawsuit in Ontario courts, rather than through a foreign arbitration.

At issue was an arbitration clause in a standard form contract that required claimants to pay a US$14,500 commencement fee and specified that the place (or seat) of arbitration was the Netherlands. The plaintiff, David Heller, sought to pursue a proposed class action against Uber Technologies Ltd. (Uber) and related companies seeking rights and benefits under Ontario's Employment Standards Act, 2000 (ESA). Uber sought to stay that class action on the basis that Mr. Heller's contract with Uber required disputes to be submitted to the International Chamber of Commerce (ICC) for mediation and, if unsuccessful, to arbitration in the Netherlands.

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