Jurisdiction in the face of partial arbitration provisions

Today's Court of Appeal decision in Dancap v Key Brand 2009 ONCA 135 is an important case dealing with the jurisdiction of the Court where some, but not all, of a relationship between parties is governed by an arbitration agreement.

Factually the case is of interest as dealing with major theatrical venues in Ontario.

At the Superior Court level the Court held that the part of the relationship not governed by arbitration was within the purview of the Superior Court.

The Court of Appeal disagreed holding that where it was arguable an arbitration clause could apply it should be left to the arbitrator to make the decision as to jurisdiction. The key is that where a dispute may be within the scope of arbitration it is the arbitrator who initially decides the breadth of jurisdiction.

Accordingly, the appeal was allowed.
James Morton
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