Court Of Appeal Emphasizes Judicial Deference To Arbitration

Most people don't realize that when they are engaged in an arbitration, their right to appeal an adverse decision is far more limited than it would have been in a court hearing. This point was emphasized in a recent decision of the Ontario Court of Appeal, Tall Ships Development Inc. v. Brockville (City) ("Tall Ships"). This decision is a reminder that that courts will be very reluctant in setting aside arbitral awards. Specifically, the Court has demonstrated that it will interpret the arbitrator's decision in a manner that protects it from review, other than in exceptional circumstances.

Factual Overview

Tall Ships Landing Development Inc. ("Tall Ships") and the City of Brockville ("Brockville") entered into a public-private partnership where Tall Ships agreed to remediate and develop a waterfront condominium and a Maritime Discovery Centre on the St Lawrence River. The parties agreed that once the project was "substantially complete", Tall Ships would sell