Background: 1550 Alberni Limited Partnership, a real estate developer, entered into a contract with Northwest Community Enterprises Ltd. to produce a 144-page promotional magazine for $150,000. The project, promoting the "Alberni by Kengo Kuma" condominium, expanded to 206 pages, leading to disputes over additional compensation. Northwest argued it was owed more for the extra work, while 1550 Alberni claimed it had overpaid, asserting that Northwest did not incur some third-party expenses.

Legal Arguments/Issues: 1550 Alberni appealed the arbitration decision, asserting several legal errors:

1. The arbitrator placed an impossible burden on them.
2. Critical findings of fact were made without admissible evidence.
3. The arbitrator misapplied legal principles by treating invoice approval as barring future disputes over their legitimacy.

Northwest contended that the contract had been modified to a fixed-price model through conduct and agreement, justifying their additional compensation claims.

Held: The British Columbia Court of Appeal upheld the arbitrator’s decision, finding no errors of law. The court concluded there was ample evidence supporting the contract modification, including the parties' conduct and internal communications acknowledging increased scope and costs. The arbitrator correctly interpreted the contract as evolving to a fixed-price model, dismissing 1550 Alberni's appeal.

Costs/Damages Awarded: The court confirmed the arbitral award in favor of Northwest, which included $175,000 for additional pages. Additionally, 1550 Alberni was ordered to pay $165,000 in legal fees and disbursements, resulting in a total award of $340,000 to Northwest.