WRONGFUL DISMISSAL - Arbitration and mediation

Law360 Canada (June 21, 2023, 10:53 AM EDT) -- Appeal by Knights of Columbus (Knights) from order dismissing its motion for a stay of proceedings in favour of arbitration. Knights was a fraternal benefit society that offered insurance products to its members. The respondent, Goberdhan, was a field agent who sold insurance through the Knights organization. The parties signed three field agent contracts. When Goberdhan’s field agency was terminated, he sued for wrongful dismissal asserting his entitlement to severance pay, termination notice pay, outstanding wages, commissions and punitive damages based on his claim to be an employee of Knights. Knights filed a notice of intent to defend and moved for an order to stay the wrongful dismissal action under s. 7(1) of the Arbitration Act. Knights relied on mandatory arbitration clauses contained in the second and third contracts it signed with Goberdhan. The motion judge dismissed the motion, concluding that Goberdhan was an employee, not an independent contractor and that the second and third contracts were invalid for want of fresh consideration, as were the mandatory arbitration clauses contained within them. Knights contended that the motion judge erred in concluding that there was no valid arbitration clause and in deciding on its stay motion about whether Goberdhan was an employee....