Mann v. Grewal
Amarjit Mann
Law Firm / Organization
MLT Aikins LLP
Navtej Bains
Law Firm / Organization
MLT Aikins LLP
Sukhwinder Grewal
Law Firm / Organization
Dennis James Aitken LLP
Lawyer(s)

Eric Aitken

Background: Amarjit Mann, Navtej Bains, and Sukhwinder Grewal were former business partners involved in joint business and real estate ventures. In 2015, they signed a settlement agreement to separate their business interests. A dispute arose over the interpretation of provisions related to the Gibsons property in British Columbia, particularly regarding the distribution of sale proceeds. The settlement agreement required an appraisal to determine the property's value, which became a point of contention.

Legal Arguments/Issues: The key legal issues involved the interpretation of the settlement agreement and whether the arbitrator had erred in his interpretation. Grewal argued that the arbitrator had misinterpreted the agreement and effectively created a new contract, while Mann and Bains contended that the judge on appeal had overstepped by not remitting the matter back to the arbitrator for further consideration.

Held: The Court of Appeal upheld the chambers judge’s decision, ruling that the arbitrator’s interpretation of the settlement agreement was unreasonable and not grounded in the agreement's language. The judge had not erred in her interpretation or in failing to remit the matter to the arbitrator. The court concluded that the arbitrator had created a new agreement, which was outside his authority.

Costs/Damages Awarded: The court dismissed the appeal and upheld the amended award, requiring Mann and Bains to pay Sukhwinder Grewal the remaining sale proceeds held in trust, totaling $1.4 million.

Court of Appeals for British Columbia
CA48250
Corporate & commercial law
$ 1,400,000
Respondent