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T-4296-76
Waterside Ocean Navigation Company, Inc. (Plaintiff)
v.
International Navigation Ltd., the Ship Lauren- tian Forest and the Owners and Charterers of the Ship Laurentian Forest (Defendants)
Trial Division, Thurlow A.C.J.—Halifax, January 19-21; Ottawa, January 25, 1977.
Maritime law — Application for stay of proceedings pend
ing arbitration Whether it is possible for plaintiff to obtain effective discovery if proceedings stayed — Canadian law not applicable to matters in dispute.
Defendant I Ltd. seeks a stay of proceedings pending arbitra tion in London, which was asked for by the plaintiff. Plaintiff claims that if the proceedings are stayed it will not be able to obtain effective discovery since the documents required are in the hands of three other companies, one of which is Canadian.
Held, the proceedings will be stayed pending arbitration. It seems probable that the applicable law is English law and it is certainly not Canadian law. Further, the procedures available for obtaining discovery in the arbitration have not been invoked and there is no evidence to suggest that they would be ineffective.
APPLICATION for stay of proceedings. COUNSEL:
J. E. Gould and W. W. Spicer for plaintiff.
A. R. Donahoe for defendant International Navigation Ltd.
D. A. Kerr, Q.C., and J. D. Murphy for defendant Laurentian Forest.
SOLICITORS:
McInnes, Cooper & Robertson, Halifax, for plaintiff.
Pace, Macintosh & Donahoe, Halifax, for defendant International Navigation Ltd. Stewart, MacKeen & Covert, Halifax, for defendant Laurentian Forest.
The following are the reasons for order deliv ered orally in English by
THURLOW A.C.J.: This is an application by the defendant, International Navigation Ltd., for an
order staying the proceedings in this action pend ing the arbitration of the matters in dispute. The notice of motion also included an application for leave to file a conditional ,appearance and an application for an order dismissing the claim against the defendant, International. Neither was pursued.
The case for a stay is, in my opinion, a strong one. By the time charter on which the cause of action arises, the plaintiff, a Pennsylvania com pany, and the defendant, International, a Bahami- an company, agreed to refer disputes to arbitration in London. Disputes having arisen, the arbitration provision was invoked by the plaintiff, arbitrators were appointed by both parties and the proceed ings have been pending since May of 1976 in respect of some of the matters in dispute. It has also been agreed by the parties to refer to the arbitrators the further matters in dispute which have since arisen. There appears to me to be no preponderance of convenience for necessary wit nesses to attend here rather than in London. With out deciding the point, it seems probable that the applicable law is English law rather than United States law. At all events, it is not Canadian law. There is no reason to believe that the arbitration proceedings will not lead to a just result.
The plaintiff's opposition to a stay is based mainly on alleged inability to obtain effective dis covery and production of documents in the arbitra tion proceedings. The plaintiff asserts that the defendant, International, does not have the required documents and cannot secure their pro duction. It wishes to join three other companies, one of which is a Canadian company, as parties to
this action as to have the benefit of the discov ery processes of this Court to compel production of the documents. However, the procedures available for obtaining discovery in the arbitration have not been invoked and I am not satisfied that they would not be effective. I do not think, therefore, that there is any sound reason for refusing a stay of proceedings against the defendant, Internation al. To that extent the motion succeeds and the order will be made.
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