Facts
Mr. Bélanger sold his shares in Machinex pursuant to a share purchase agreement that contained an arbitration clause. Bélanger initiated an arbitration against Machinex claiming outstanding consideration for his shares. Machinex counterclaimed, alleging Bélanger was breaching his non-compete undertakings through a company called Waste Robotics ("Robotics"), in which Bélanger was a shareholder. Machinex successfully asked the arbitral tribunal to join Robotics to the arbitration.
Machinex later sought to join another entity,
Decision
Analysis
The Court confirmed that it is possible to join third parties to an arbitration when the circumstances require their presence. Considering the similar nature of the different relief - that pending before the arbitral tribunal and that which Machinex would have to pursue against
The Court's key analysis points were:
-
The arbitral tribunal committed no error in concluding that it was necessary to determine whether Bélanger used
- The arbitral tribunal did not prejudge the merits of the case in relying on the allegations in the parties' pleadings.
- Conflicting judgments could result should the arbitral tribunal be precluded from examining the acts of Bélanger with
Newtech that might be actionable before theSuperior Court . - It would be inappropriate to split the dispute, which would multiply proceedings and slow or add complexity to the adjudication process.
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