What if a class action was certified as a result of an arbitration agreement?

Ontario, Canada


The following excerpt is from Smith Estate v. National Money Mart Company, 2008 CanLII 27479 (ON SC):

In order to understand what follows in these Reasons for Decision, it is important to emphasize that this outcome is a matter of statutory interpretation. It is also worth emphasizing that the rule developed in MacKinnon v. National Money Mart Company and used in the case at bar does not automatically strike down arbitration agreements. A court may conclude that arbitration is preferable to a class proceeding and dismiss the certification motion. Or a court may for other reasons refuse to certify the class proceeding, in which case the arbitration agreement would not be “invalid” and the exemption found in paragraph 2 of s. 7(2) of the Arbitration Act, 1991, would not be available and a stay of the uncertified action would be granted.

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