In J.P. Thomson Architects Ltd. v. Greater Essex County District School Board, 2025 ONCA 378, the Court of Appeal for Ontario considered the interpretation of a standard form dispute resolution clause (“GC18”) in a contract between an architectural firm and a public-school board. The appellant sought to mediate ongoing disputes after communications between the parties had deteriorated. When the respondent refused mediation, arguing the 30-day window had elapsed, the Applicant sought to appoint an arbitrator. The application judge agreed with the respondent, denying the request on the grounds that mediation was not sought within the prescribed period.
On appeal, the Court of Appeal rejected the application judge’s interpretation of the clause imposing a strict 30-day deadline for initiating mediation, holding instead that GC18 only required parties to attempt to resolve disputes informally for at least 30 days before moving to formal mediation. Specifically, the Court of Appeal found there was no language in GC18 suggesting a deadline to initiate mediation.
The Court of Appeal further emphasized that the application judge exceeded its role by making conclusive factual findings on the scope of the parties’ disputes. Jurisprudence dictates that when a dispute arguably falls within the scope of an arbitration agreement, the arbitrator should determine their own jurisdiction. The Court reiterated that the threshold for court intervention is low—only an arguable case is needed to trigger arbitration.
The decision in J.P Thomson serves as a cautionary reminder about the misapplication of dispute resolution clauses and underscores the Court’s preference for upholding parties’ rights to arbitrate. Practitioners and contracting parties should be live to the fact that clear language governs—courts will not read in limitations that the contract itself does not express. At Gilbertson Davis LLP, our lawyers have experience with commercial arbitration, civil litigation and contract disputes. Please contact Gilbertson Davis LLP to schedule a consultation with one of our lawyers.
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