Background Facts: In December 2020, Montaigne Group Ltd. and St. Alcuin College for the Liberal Arts Society entered into a Joint Venture Agreement (JVA) to construct a four-story building on St. Alcuin’s property. The first three floors were designated for the school, while the fourth floor, known as the Montaigne Amenity Space, was for Montaigne. In April 2023, St. Alcuin terminated the JVA, alleging breaches by Montaigne. Montaigne then filed a lawsuit and registered a Certificate of Pending Litigation (CPL) against the property.

Legal Arguments/Issues: St. Alcuin sought to stay the lawsuit, invoking the JVA’s arbitration clause and arguing that the dispute should go to arbitration. Montaigne opposed the stay, asserting that St. Alcuin waived its right to arbitration by participating in court proceedings, including filing a motion to strike parts of Montaigne’s claim.

Key Issues: The court needed to decide if St. Alcuin’s motion to strike was a “step in the proceedings” under the Arbitration Act, which would preclude a mandatory stay, and whether St. Alcuin’s actions constituted a waiver of its right to arbitration.

Rulings: The court ruled that St. Alcuin’s motion to strike was a substantive step in the proceedings, precluding a stay, and that St. Alcuin had waived its right to arbitration, making the arbitration clause inoperative.

Costs: The court awarded costs at Scale B to Montaigne Group Ltd. as the successful party.