Case Overview:
The case involved an appeal by Kelly Touvongsa against a decision of the British Columbia Supreme Court. Lahouri, who underwent a cosmetic procedure at Touvongsa’s business, Vancouver Sculpt Lab, claimed negligence, battery, and breach of contract. Touvongsa sought to stay the court proceedings under section 7 of the Arbitration Act based on an arbitration clause in a signed release form. The chambers judge dismissed the stay, finding the clause unconscionable.

Key Legal Issues:
The appeal focused on whether the chambers judge erred by assuming jurisdiction over the validity of the arbitration agreement instead of referring the matter to arbitration under the competence-competence principle. The Dell and brick wall frameworks were applied to determine whether the court or the arbitrator should resolve the jurisdictional challenge.

Court Decision:
The British Columbia Court of Appeal allowed the appeal, finding the chambers judge failed to address the threshold jurisdictional question. The court ruled the arbitration agreement was neither manifestly invalid nor rendered inoperative and that these issues required resolution by an arbitrator.

Costs Awarded:
The Court of Appeal ordered the underlying proceedings stayed under section 7 of the Arbitration Act. Costs were awarded in favor of Kelly Touvongsa for both the appeal and the lower court application, but the total monetary amount was not specified in the decision.