Background: Magnum Management Inc. and Chilliwack Hangar Corp. were involved in an arbitration to determine the annual minimum rent payable under a sublease agreement for premises at Chilliwack Airport. The sublease mandated periodic rent reviews through arbitration.

Legal Arguments/Issues: Magnum Management Inc. sought leave to appeal an arbitral award under Section 59 of the Arbitration Act, arguing the arbitrator made errors in applying the legal principles of issue estoppel. The key issues included whether the arbitrator properly applied findings from a previous 2018 arbitration regarding the interpretation of sublease terms such as "similar premises," "in the area," and "at that time." Magnum Management also contended that the arbitrator misapprehended the 2018 arbitrator’s reasoning and that the award was not grounded in the submissions of either party.

Held: The arbitrator determined the minimum rent to be $4.08 per square meter for the period from January 1, 2023, to December 31, 2027. The award was calculated by averaging all the rental rates of comparable premises at Chilliwack Airport as of January 1, 2023. Magnum Management's application for leave to appeal was dismissed as they failed to identify an extricable question of law, and none of the criteria for granting leave under Section 59(4) of the Arbitration Act were met.

Costs: The document did not specify the total amount of costs or award in favor of the successful party.