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Cassels Brock Successful in Stay Motion as Federal Court Enforces Arbitration Clause

Published: 04/04/2017

Team: Peter Henein, Alison Hayman, A. Chandimal Nicholas

Cassels Brock was successful in bringing a motion to stay a claim of trademark and copyright infringement filed against its client, Efaflex. The focus of the dispute was whether the Plaintiff’s claims fell within the scope of the arbitration clause contained in the agreement between the parties, which provides that any disputes under the agreement must be assessed by the World Intellectual Property Organization arbitration panel in Geneva, Switzerland.

In its Statement of Claim, the Plaintiff attempted to circumvent the application of the arbitration clause by arguing that issues of trademark and copyright are within the exclusive jurisdiction of the Federal Court. The Court rejected the Plaintiff’s jurisdictional arguments and adopted the Moving Party’s theory of the case in holding that the issues of fact and law in dispute arise from and relate to the interpretation of the agreement. On this basis, the Court found that the arbitration clause covered the dispute and further held that the Plaintiff was unable to establish “strong cause” to justify not granting a stay.

Efaflex was represented by a team that included Peter Henein, Alison Hayman and Chandimal Nicholas.

The full decision can be found here.