Amarjit Mann and Navtej Bains, former business partners of Sukhwinder Grewal, entered into a settlement agreement in 2015 to resolve disputes over jointly owned business and real estate ventures.
A specific disagreement arose regarding the distribution of sale proceeds from a property in Gibsons, British Columbia, leading to arbitration.
Key Issues:
Arbitration Decision: The arbitrator initially decided in favor of Mann and Bains, which was contested by Grewal, leading to an appeal.
Appeal: The chambers judge found that the arbitrator had erred by creating a new contract instead of interpreting the existing settlement agreement, leading to the amendment of the award in favor of Grewal.
Court's Findings:
Arbitrator's Error: The arbitrator was found to have misinterpreted the settlement agreement, especially concerning the value and ownership transfer of the Gibsons property.
Judicial Amendment: The judge amended the arbitration award to more accurately reflect the parties' original intentions, as stated in the settlement agreement.
Legal Principles:
Contractual Interpretation: The appeal highlighted the importance of grounding arbitration awards in the text of the original contract and avoiding the creation of new agreements through misinterpretation.
Standard of Review: The review standard applied was reasonableness, affirming the narrow scope of appellate intervention in arbitration awards.
Conclusion:
The appeal by Mann and Bains was dismissed, upholding the judge’s decision to amend the arbitration award, which corrected the arbitrator's errors and aligned the outcome with the contractual intentions of the parties.
