Background:
The plaintiffs sued the defendants for a dispute that involved investments made by the plaintiffs in two companies associated with Molyviatis and Bennett.

Key Legal Issues:
The Harder Group alleged that the defendants made fraudulent or negligent misrepresentations leading to their investments. They claimed damages for losses on capital and returns on those investments. The defendants argued that the plaintiffs had received the equity stakes they agreed upon and denied making any misrepresentations.

The core issue was whether the dispute should be resolved through arbitration in London, as stipulated in the investment agreements, or through the British Columbia courts, where the Harder Group had filed their civil claim.

Arbitration Clause and Stay Application:
The defendants invoked the International Commercial Arbitration Act, requesting a stay of proceedings to refer the matter to arbitration. However, the court found that by filing a detailed Response to Civil Claim (RTCC), the defendants had submitted a statement on the substance of the dispute, thus forfeiting their right to arbitrate under the Act.

Ruling and Costs:
Justice Morley dismissed the stay application, ruling in favor of the Harder Group. Costs were awarded to the plaintiffs, but the specific amount was not set in this decision.