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Case 9: MAL 8

Canada: Federal Court of Canada, Trial Division (Denault, J.)

2 November 1987

Coopers and Lybrand Limited (Trustee) for BC Navigation S.A. (Bankrupt)

v. Canpotex Shipping Services Limited

Published in English: 16 Federal Trial Reporter, 79

Where a valid arbitration agreement exists and a party requests a transfer of the dispute to the arbitration tribunal at the first opportunity, article 8 MAL obliges the court to refer the matter to arbitration.

The charter-party agreement executed by the parties contained an arbitration clause. After Coopers and Lybrand commenced an action against the Canpotex in court, Canpotex filed a conditional appearance objecting to the jurisdiction of the court and sought a stay of proceedings in order to allow the objection to be made. Canpotex also sought an order pursuant to section 50(1)(b) of the Federal Court Act seeking a stay of proceedings.

The court granted Canpotex's motion. Pursuant to article 8 of the Model Law, which is enacted by the Commercial Arbitration Act, R.S.C.1985, c.C-34.6, the court was obliged to refer the matter to arbitration. A valid arbitration agreement existed and Canpotex had requested a transfer of the dispute to the arbitration tribunal at the first opportunity. In the alternative, the court would have granted a stay pursuant to section 50 of the Federal Court Act.


This case is cited in Case 19.

Additional Information published in later CLOUT issue (on "4 November 1993"):

Commented on by Tetley in [1993] Lloyd's Maritime and Commercial Law Quarterly, 238.

Commented on by Paterson in Williamette Law Review, Vol. 27, 573.

Additional Information published in later CLOUT issue (on "9 February 2000"):

Abstract published in English: [1995] Model Arbitration Law Quarterly Reports, Vol. 1, issue 1, 95

Text of the court decision published in English: [1995] Model Arbitration Law Quarterly Reports, Vol. 1, issue 1, 98


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