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ARTICLE · 06 FEBRUARY 2024

Buffalo Point First Nation Et Al v Cottage Owners Association

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Manitoba Court finds a party's bad faith is no basis for an arbitral tribunal to exceed its jurisdiction and rewrite a settlement agreement.

CanadaLitigation, Mediation & Arbitration
Gowling WLG
Gowling WLG
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Manitoba Court finds a party's bad faith is no basis for an arbitral tribunal to exceed its jurisdiction and rewrite a settlement agreement.

Facts

Buffalo Point First Nation leased land to individuals represented by the Buffalo Point Cottage Owners Association (the Association). The leases were for the development of cottages on the land, into which the cottagers invested substantial sums of money in reliance on their long-term leases. The dispute between the parties arose when Buffalo Point unilaterally changed the agreed service fee structure to a tax mechanism, which was more costly to the cottagers. In 2015, the parties reached a settlement that dispensed with the main arbitration and all related litigation. Under the settlement:

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