Wellman v. TELUS: Supreme Court Emphasizes Enforceability Of Arbitration Provisions

In its recent 5-4 decision in Wellman v. Telus, the Supreme Court of Canada confirmed the enforceability of arbitration provisions in the context of business (i.e., non-consumer) contracts by granting the defendants' request to stay such claims in a proposed class proceeding. Notably, the Supreme Court granted the stay notwithstanding the fact that the class action ― which included both consumer and business claimants who were subject to mandatory arbitration provisions ― was allowed to proceed on behalf of the consumer claimants, whose rights to avail themselves of the class actions regime were preserved by statute.

The decision provides increased certainty and predictability with respect to the enforceability of arbitration agreements between commercial parties and emphasizes the legislature's role in setting policy in the face of competing public policy objectives.