In commenting on the nature of the various allegations, and the scope of the arbitration clause, Wedge J. in James v. Thow noted the argument of the two corporate parties not subject to the arbitration agreement that the personal claims against them in the James Counterclaim were “clearly derivative” of the rights under the agreement containing the arbitration clause and would arise, if proved, only if the defendant corporation and its principal had a right of claim under that agreement against the other corporation and its principal (at para. 55). Wedge J. observed at para. 72 that the “underpinning” of the personal claims being advanced, and “root cause of the dispute”, was indeed the corporate parties’ agreement containing the arbitration clause. She found at para. 76 that the disputes were arguably within the scope of the arbitration agreement and were “inextricably entwined” with the issues that had already been remitted to arbitration.
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