Court of Appeal Blurs Boundaries in Forum Selection Case
A recent decision from the Ontario Court of Appeal has international arbitrators scratching their heads as non-contracting parties to a dispute based largely in Ontario are sent to arbitration in Germany. The majority decision of Brown J.A. is notable for the fact that it runs contrary to long-standing principles of both conflict law and the law of arbitration. The dispute in Novatrax International Inc. v. Hägele Landtechnik GmbH concerned the breach of an exclusive sales agreement to sell industrial reversible fans from Germany in the North American market. The agreement contained a hybrid forum selection and arbitration clause whereby the ... [more]
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