Arbella S.A. v. Aghia Markella ( The )
T-2808-94
Nadon J.
28/4/95
5 pp.
Application to refer dispute arising from charter-party agreement to London for arbitration -- Defendant ship owner entering charter-party agreement (agreement) with plaintiff for purpose of carrying cargo of wheat -- Vessel detained by Canadian Coast Guard before vessel tendered and delivered to plaintiff -- Plaintiff cancelling agreement; chartering another vessel to carry cargo and claiming resulting loss -- Defendant submitting unlawful restraint of ship by Coast Guard rendering defendant not liable for failure to deliver ship in timely manner -- Agreement providing disputes arising between owners and charterers be referred to arbitration in London -- Canada, as signatory to Commercial Arbitration Code, giving Code force of domestic law; Code, art. 8 providing Court must refer dispute to arbitration unless agreement found to be null and void, inoperative or incapable of being performed -- Plaintiffs arguing parties to agreement could not contemplate arbitrators in London seized with dispute relating to whether Canadian Coast Guard complying with Canada's treaty obligations and domestic law -- Issue to be decided by arbitrators in London whether defendants in breach of charter-party obligations, i.e. whether defendants excused for not having delivered ship in timely fashion -- Positive finding of genuine dispute between parties requiring Court to refer dispute to arbitration -- Application allowed -- Commercial Arbitration Code, being Schedule to Commercial Arbitration Act, R.S.C., 1985 (2nd Supp.), art. 8.