Background: The case involved a corporate dispute between the appellant and respondent, shareholders in Native Canada Footwear Ltd. Hawrish and Presley Investments Ltd. owned 25-33.3% of shares, while Hawthorn and Blood Alley Holdings Inc. owned over 50%. Hawrish, the former president and director, claimed oppression after being removed as a director.

Legal Arguments/Issues: Whether the court should stay proceedings in favor of arbitration under section 7 of the Arbitration Act. Hawthorn and Native Canada Footwear Ltd. sought a partial stay of new claims in an amended notice of civil claim, asserting the original claims had already been responded to. Hawrish alleged oppression due to a breach of reasonable expectations as a minority shareholder under the Business Corporations Act. He also claimed Hawthorn breached fiduciary duties by not acting in good faith and violating the Voting Trust Agreement by failing to ensure his board position. Further, Hawrish alleged breach of trust and knowing assistance, asserting that Hawthorn did not vote in his favor at the 2020 AGM and that the company knowingly assisted in this breach.

Court’s Ruling: The Court of Appeal dismissed the appeal, holding that the chambers judge did not err in concluding the amended claims were not substantially different from the original ones and were properly within the court’s competence. The court ruled the issues raised could not be brought as independent proceedings without being barred as an abuse of process.

Costs/Damages Awarded: Financial terms were not specified.