In response, Uber submitted an application to stay the proposed class procedure in favour of arbitration proceedings in the Netherlands, as provided for in the compromise clause in the standard form agreements that Uber had with its drivers. This clause required that all disputes between the parties be resolved through mediation and arbitration in the Netherlands. Mr. Abella and Mr. Rowe then turned to the arguments about unacceptableness and felt that this doctrine was the most appropriate basis for dealing with the potential injustice created by a compromise clause in a standard form contract. While the prevailing theory of contract law was that courts had to impose freely negotiated negotiations between the parties, the just doctrine of scruples exempts unfair agreements resulting from unequal bargaining power. The Tribunal explained the underlying justifications for the doctrine as follows: the Supreme Court of Canada in Uber Technologies Inc. Heller, 2020 CSC 16, that the arbitration clause is unenforceable, paves the way for class action in Ontario. A seven-judge majority found this clause unacceptable. A judge ruled that the possibility of scruples was not the appropriate framework for the analysis, but that the clause was contrary to public policy. A judge upheld the dissent clause. The Court of Appeal granted the applicant`s complaint and found that the compromise clause was null and void because it was not too contested and had left ESA.
The court found that the compromise clause was unacceptable because it was an unfair matter and was due to a significant inequality of bargaining power between the applicant and Uber. The Court of Appeal found that Uber had deliberately chosen the compromise clause to favour and exploit its drivers, who were clearly sensitive to Uber`s strength in the market. [6] It is important that the Court of Appeal also found that the requirement for a mandatory arbitration procedure for dispute resolution deprived a staff member of the right to file complaints with the Ministry of Labour, as required by the Employment Standards Act, so that minimum country standards were not properly applied.