Case number: 35
Article number: model arbitration law / 8
Thessaurs issue:
Country of decision: Canada
Year of decision: 1992
Type of decision: Judicial decision

Case 35: MAL 8
Canada: Ontario Court, General Division (Day J.) 1 October 1992
Canada Packers Inc. et al. v. Terra Nova Tankers Inc. et al.
Published in English: 11 Ontario Reports (3d), 382

The fact that a claim on which a party seeks arbitration is grounded in tort does not preclude the application of MAL.

The parties entered into a charter-party agreement which contained an arbitration clause. The respondent sued the applicant in
both contract and tort. At issue was whether the court should grant a stay of proceedings pursuant to article 8 MAL. The
respondent claimed that MAL did not apply to tortious actions and that the absence of the word "commercial" characterizing
the term arbitration in the International Commercial Arbitration Act, Revised Statutes of Ontario, 1990, c. 1.9. indicated that
MAL would not apply to the situation.

The court found that the fact that a claim is grounded in tort does not preclude arbitration. The court also determined that even
though the word "commercial" does not appear in the implementing legislation, it does appear in the schedule to the legislation
and as such MAL will apply to commercial arbitrations in Ontario. The court granted the stay of proceedings.