The question of whether the standard of review framework set out
in Canada (Minister of Citizenship and
Immigration) v. Vavilov, 2019 SCC 65, applies to
commercial arbitration is unclear. In a recent case, Wastech Services Ltd. v. Greater Vancouver
Sewerage and Drainage District, 2021 SCC 7, the majority
of the Supreme Court of Canada decided to "leave [that] for
another day."
Background
Wastech Services Ltd. (Wastech) moves and disposes of waste. In
1996, Wastech and the Greater Vancouver Sewerage and Drainage
District (Metro) entered into a 20-year contract for the disposal
of waste from the Greater Vancouver Regional District (the
Contract).
Wastech agreed to remove and transport waste to three disposal
facilities. Metro was responsible for allocating where the waste
was to be disposed. The volume of waste allocated to each facility
was a critical variable in calculating Wastech's compensation.
In 2010, Metro significantly redirected the volume of waste