Case number: 14
Article number: model arbitration law / 8
Thessaurs issue:
Country of decision: Canada
Year of decision: 1989
Type of decision: Judicial decision

Case 14: MAL 8
Canada: Federal Court of Canada, Appeal Division (Marceau, Hugessen and Desjardins, JJ.A.) 2 June 1989
Iberfreight S.A. et al. v. Ocean Star Container Line AG and J.W. Lunstedt KG
Published in English: 104 National Reporter, 164

Both applications were dismissed by the motions judge, but were upheld in part by the Federal Court of Appeal. Article 8 of
the Model Law, which is enacted by the Commercial Arbitration Act, Revised Statutes of Canada 1985, c.C-34.6, does not
require the dismissal of a motion for service ex juris nor require the court to decline jurisdiction whenever the contract
documents contain an arbitration agreement. Therefore, the application by the defendants concerning service ex juris was
dismissed.

The court stayed the action against Ocean Star and dismissed the appeal of Lunstedt concerning the arbitration clause. With
regard to Ocean Star, the Court stayed the action and referred the matter to arbitration in accordance with the terms of the bill
of lading. The application by Lunstedt was dismissed due to a lack of evidence.