Background: In December 2018, Dalbir Bains engaged with James Tworek, an investment consultant, to raise capital for private healthcare projects. Bains was introduced to Josh Schumann and Rory Loader, leading to financial transactions involving the monetization of standby letters of credit (SBLC). Bains alleged that the defendants induced him to deposit funds with promises of significant returns, which never materialized. Bains and 10031670 Manitoba Ltd. suffered losses as the promised funds were never received.

Legal Arguments/Issues:

• Allegations: The plaintiffs alleged conspiracy, fraud, deceit, and fraudulent misrepresentations by the defendants, leading to failed financial transactions amounting to approximately $1,000,000 CAD.
• Jurisdiction: The Loader defendants sought to stay proceedings on the grounds of lack of jurisdiction and forum non conveniens, arguing that Manitoba was not the proper forum for the case.
• Arbitration Clauses: The defendants argued that disputes should be resolved through arbitration as stipulated in the agreements.

Court Findings:

• Jurisdiction: The court found that Manitoba had jurisdiction, as the alleged torts and misrepresentations were received and acted upon in Manitoba, and harm was suffered there.
• Arbitration Clauses: The court concluded that the arbitration clauses were inapplicable, contradictory, and inoperable due to alleged pre-contractual fraud and misrepresentations. The clauses were also found to lack clarity and certainty.

Decision: The court denied the Loader defendants' motion to stay the proceedings.

Costs/Award: The document did not specify the total amount of costs or any award in favor of the successful party.