Two Recent Decisions Affirm International Arbitration Clauses Will Be Enforced

Two recent decisions reinforce the willingness of Ontario courts to enforce arbitration clauses, apply the competence-competence doctrine and refer any disputes regarding an arbitrator's jurisdiction to the arbitrator for resolution. The competence-competence doctrine is an internationally recognized principle that an arbitral tribunal has the power to determine its own jurisdiction. In Ontario, the doctrine has been enacted into both section 17(1) of the Arbitration Act, 1991 (OAA) and section 16 of the International Commercial Arbitration Act, 2017 (ICAA).

HELLER V. UBER TECHNOLOGIES LTD ET. AL.

This decision concerned the enforceability of an international arbitration clause in the context of a proposed class action against ride-sharing company Uber Technologies Ltd. (and related companies, together Uber). The plaintiff alleged that he and other drivers were properly employees and thereby entitled to certain rights and benefits under Ontario's Employment