In a decision released on June 26, 2020, Uber Technologies
Inc. v. Heller 2020 SCC 16, the Supreme Court of
Canada (the “SCC”) found invalid the arbitration clause
in Uber's standard form service agreement with its drivers in
Canada, requiring that they arbitrate their disputes in the
Netherlands. This decision paves the way for Uber's drivers
to proceed with a proposed $400 million class action.
Key takeaways from this decision:
- Review the Arbitration
Clauses in Standard Form Contracts – All companies
should carefully review arbitration clauses in their standard form
contracts or where employment contracts call for arbitration. This
is particularly important if there are power imbalances between the
parties, or the clause mandates a procedure that makes resolving
the dispute impractical (such as disproportionate filing fees or
where foreign law is deemed to apply).
