Key Points:

1. Motion to Stay Proceedings:
   • Defendants sought to stay the court proceedings and resolve the dispute through arbitration under s. 9 of Nova Scotia’s Commercial Arbitration Act.
   • The court granted the stay, directing the parties to proceed with arbitration and allowing the arbitrator to address jurisdictional issues related to personal guarantors.
2. Background:
   • Defendants owned shares in three car dealership companies sold to 852 NS Ltd. under a Share Purchase Agreement on December 14, 2018.
   • The purchase price was $14.8 million plus working capital, with part secured by a Vendor Take Back (VTB) Note.
   • Colbourne Chrysler alleged fraud, claiming Defendants inflated financial performance data to increase the dealership's sale price.
3. Arbitration Agreement:
   • The agreement included an arbitration clause (s. 9.01), allowing unresolved matters to be submitted to arbitration.
   • Defendants served a Notice of Arbitration in January 2021, but no formal response followed, leading to this legal action.
4. Court's Analysis:
   • The court found no undue delay by Defendants and emphasized the strong preference for arbitration under the Act.
   • Claims against personal guarantors were referred to the arbitrator for initial determination of jurisdiction.

Conclusion:

• The court ordered a stay of proceedings, requiring the parties to pursue arbitration per the Share Purchase Agreement. The arbitrator will determine jurisdictional issues related to personal guarantors and related defenses.
• The document does not specify the total monetary award.