Dispute resolved by accountants so nothing to submit to arbitration

STAY OF PROCEEDINGS

Dispute resolved by accountants so nothing to submit to arbitration

Ad hoc motion by defendant to stay action for lack of jurisdiction. Plaintiff had moved for summary judgment with respect to payments allegedly due pursuant to three promissory notes. Parties entered share purchase agreement for defendant’s purchase of radio station owned by plaintiff. Defendant purchased all shares for $3 million on closing, plus $250,000 promissory note payable in three instalments. Defendant failed to pay first installment as required and plaintiff commenced action. Defendant failed to pay next two installments and plaintiff brought within motion. Defendant argued court lacked jurisdiction because dispute remained alive about purchase price adjustments so had to go to arbitration according to share purchase agreement. Motion dismissed. Dispute had been resolved by external accountants as provided by share purchase agreement so there was nothing to submit to arbitration. Plaintiff was seeking judgment only for promissory notes.
1047358 Ontario Inc. v. Haliburton Broadcasting Group Inc. (May 28, 2012, Ont. S.C.J., O’Neill J., File No. CV-09-83) 217 A.C.W.S. (3d) 594 (8 pp.).