Law360 Canada ( May 3, 2018, 7:44 AM EDT) -- Appeal by the franchisor from the dismissal of its appeal from an arbitrator's decision that the two-year limitation period had not expired and arbitration could proceed. In 2008, the parties entered into a franchise agreement for the development of 13 "Le Pain Quotidien" locations in Ontario and Quebec. In 2009, the franchisee delivered a notice of rescission asserting that the franchisor had breached its disclosure obligations. The franchisor disputed the validity of the franchisee's notice of rescission. Almost two years later, the franchisee commenced an action. The franchisor objected on the grounds that the franchise agreement required that disputes be mediated and then arbitrated. The franchisee claimed that the mediation requirement was void because it required mediation in Delaware and, in any event, the entire franchise agreement was void because of the franchisor's breaches. The action was dismissed for delay in 2013. The franchisee tried to revive the action, but it was stayed on the basis of the ADR provisions. The parties appointed an arbitrator and the franchisor brought a preliminary motion to dismiss the arbitration as out of time. The arbitrator determined that the arbitration was not time barred. The franchisor appealed. The appeal judge dismissed the appeal. He concluded that the arbitrator's finding that mediation was a precondition to arbitration was based on a reasonable interpretation of the franchise agreement. He also upheld the arbitrator's determination that the Delaware provision was severable. The franchisor appealed arguing that both the arbitrator and the appeal judge erred in their interpretation of the franchise agreement and the relevant statutory provisions in refusing to allow its preliminary motion to dismiss the arbitration as out of time....