Think Before You Strike: Motion To Strike Constitutes Waiver Of Arbitration Clause

Why this Decision Matters

In the recent decision of RH20 North American Inc. v Bergmann 2024 ONCA 445, the Court of Appeal for Ontario considered whether a motion to strike claims made in a pleading prohibited a party from also seeking a stay in favour of arbitration.¹

Overview

The decision in RH20 North American Inc. v Bergmann addressed a cross-appeal of a motion to stay court proceedings in favour of arbitration. The basis of the dispute related to a licensing agreement between RH20 North American ("RH20"), and the Defendant, Martin Bergmann ("Bergmann"), who operated via several other entities (including Click + Clean GmbH ("Click")).² RH20 had a licensing agreement with Bergmann to license and sell WSB-branded wastewater treatment models in Ontario. RH20 alleged that Bergmann wrongfully terminated the licensing agreement and set up their own North American company, which then took over RH20's business.³