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ARTICLE · 12 JULY 2017

The Appeal In Teal: SCC Majority Restores Commercial Arbitrator's Award

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The Supreme Court has again restricted the scope of appeals from decisions of commercial arbitrators, this time upholding an arbitrator's award of compensation under a British Columbia statute by a close majority.

CanadaLitigation, Mediation & Arbitration
Bennett Jones LLP
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The Supreme Court has again restricted the scope of appeals from decisions of commercial arbitrators, this time upholding an arbitrator's award of compensation under a British Columbia statute by a close majority.

In a sharply split 5–4 decision, the court in Teal Cedar Products v. British Columbia1  overturned decisions in the B.C. courts and restored a commercial arbitrator's original rulings on the compensation owed to Teal.

The majority concluded that the arbitrator's interpretation of a B.C. statute was not unreasonable and declined to interfere with it. By contrast, four members of the court concluded that the arbitrator's legal interpretation was not only incorrect, but unreasonable.

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