Nanisivik Mines Ltd. v. F.C.R.S. Shipping Ltd.

T-27-92

Walsh J.

19/1/93

Application by defendant, Canarctic, for order referring parties to arbitration as against it, or granting leave to file conditional appearance to object to jurisdiction and staying proceedings -- Bill of lading incorporating terms of contract of affreightment, requiring all disputes of law and fact arising under charterparty be referred to arbitration -- Vessel chartered by defendant to carry cargo of zinc sinking, losing cargo and causing plaintiffs damage of $5,000,000 U.S. -- All issues in such complex action not solved by arbitration between plaintiffs and defendant Canarctic -- Main issue relationship between Federal Court Act, s. 50(1) and Schedule under Commercial Arbitration Act, art. 8 -- Canarctic entitled to seek arbitration as not "submitting a first statement to the substance of the dispute" -- Case law reviewed -- Even agreement to arbitrate in bill of lading cannot remove all discretion from Court to continue proceedings before it and to decide whether stay of proceedings will be granted -- Words "any disputes of law or fact" in charterparty, para. 32, very broad -- Plaintiff, Zinc Corporation of America, not bound by arbitration clause in contract of affreightment between Canarctic and other plaintiff Nanisivik Mines Ltd. -- Possibility of conflicting decisions not valid basis to refuse to exercise discretion to grant stay -- Staying of proceedings appropriate under Commercial Arbitration Code, art. 8 so as to proceed to arbitration of claim against Canarctic -- Discretion of Court under Federal Court Act, s. 50 must be relied on in granting stay against Canarctic -- Application allowed -- Commercial Arbitration Act, R.S.C., 1985 (2nd Supp.), c. 17, Schedule, art. 8 -- Federal Court Act, R.S.C., c. F-7, s. 50.