28 Jun 2023
Grant et al v Seaway Auto Group. Inc. et al
In the case of Grant et al v Seaway Auto Group. Inc. et al dated June 6, 2023, involved a dispute had arisen from conflicts related to the operation of a Volkswagen dealership in Cornwall, governed by a shareholders' agreement that had mandated arbitration for disputes, with decisions of the arbitrator being final and binding.
The applicants, Cameron and Christopher Grant, had been brothers. Cameron had owned 49% of 11678833 Canada Inc. ("116"), which, in turn, had owned 49% of defendant Seaway Auto Group Inc. ("Seaway"). Carolyn Bourett had owned the remaining 51% of Seaway, the parent company of OEM Automotive Solutions Inc. ("OEM"), which had operated the Volkswagen dealership.
The Arbitrator had found that the applicants had interfered with dealership operations, violated the shareholders' agreement, breached fiduciary duties, and failed in their duty of care as directors. She had awarded $348,278.73 in damages and costs.
The applicants had not contested liability but had sought to set aside the awards, alleging unfair treatment and inadequate reasons under s. 46(1)6 of the Arbitration Act.
The application had been dismissed, and the court had encouraged the parties to reach an agreement on costs. The applications to enforce the awards had not been discussed as counsel had anticipated a consent order would be reached.