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Case 34: MAL 8
Canada: Federal Court of Canada, Trial Division (Joyal J.)
30 September 1992 and 9 October 1992 (identical decisions)
Miramichi Pulp and Paper Inc. v. Canadian Pacific Bulk Ship Services Ltd.
Original in English and French
Unpublished
While the Federal Court possesses some permissive jurisdiction over the granting of stays of proceedings, strong reasons are required to overcome the assumption that contracts must be respected and, therefore, article 8 MAL must operate.
The parties entered into a charter-party agreement whereby any dispute would be referred to arbitration in London. A dispute arose and court proceedings were commenced. A stay of these proceedings was granted by the Senior Prothonotary. This decision was appealed.
The court noted the mandatory nature of article 8 MAL (enacted by the Commercial
Arbitration Act, Revised Statutes of Canada 1985, c.C-34.6) which requires the court to
grant a stay of proceedings and refer matters to arbitration where certain conditions are
met. The court also noted the permissive jurisdiction in s. 50 of the Federal Court Act,
Revised Statutes of Canada 1985, c.F-7 which allows the Federal Court to grant stays of
proceedings in the interest of justice. The court found that the interest of justice
generally dictated that contractual agreements be upheld. In order to overcome this
assumption, strong reasons are required. The court found that no such strong reasons
existed in this case and upheld the decision of the Senior Prothonotary granting the stay.
Additional Information published in later CLOUT issue (on "9 February 2000"):
Abstract published in English: [1995] Model Arbitration Law Quarterly Reports, Vol. 1, issue 4, 55
Text of the court decision published in English: [1995] Model Arbitration Law Quarterly Reports, Vol. 1, issue 4, 58
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