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Gulf Canada Resources Ltd V. Arochen International Ltd

2692 Words11 Pages

Advise Mr Eve on his application for a stay on the proceedings making reference to legal provisions and appropriate case law. Mr Eve is being sued by Mrs Sharke for breach of contract. He has refused to pay Mrs Sharke for her work because he alleges that she has misappropriated funds and that she was professionally incompetent. Mr Eve’s solicitors sought an extension of the deadline of 35 days to lodge a defence which was accepted without protest or the need to serve formal notice. Mr Eve is now seeking a stay on proceedings and I will advise him on his application The Canadian case of Gulf Canada Resources Ltd v. Arochen International Ltd formulated a test to decide whether or not a stay in proceedings should be granted. The test, created by Hinkson J of the Court of Appeal, stated that there are two issues that must be addressed. Firstly, the dispute at hand must fall within the terms of the arbitration agreement. Secondly, it must be shown that the party who commenced the legal proceedings is a party to the arbitration agreement. …show more content…

The reason they give for this is that it must be assumed that when a dispute arises, parties who are subject to arbitration agreements “are to be dealt with in accordance with the arbitration agreement”. This idea of interpreting arbitration agreements broadly has been expressed by Lord Hoffmann in Fiona Trust v Privlov and in the more recent case, by MacEochaidh J, in P Elliot & Co. Ltd v FCC Elliot Construction Ltd. Regarding the second issue, Mr Eve is a party to the arbitration agreement as he is a

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