Background Facts:
Colony Construction Corporation ("Colony") and Scott Steel Erectors Inc. ("Scott") entered into a joint venture agreement to design and erect five buildings for a worker accommodation center at Cedar Valley Lodge in Kitimat, British Columbia. Colony was responsible for design and material procurement, while Scott handled on-site supervision and labor. Disputes arose, leading to a "Going Forward Agreement" that terminated the joint venture, and Colony initiated arbitration seeking repayment of a $400,000 advance.

Legal Issues:
Scott counterclaimed in the arbitration, alleging Colony breached implied terms of the joint venture agreement, including:

• Quality of materials and workmanship.
• Timeliness of completing the work.
• Fairness in design execution.

The arbitrator found in favor of Scott, determining that Colony breached these implied terms.

Arbitration Outcome:
The arbitrator awarded Scott damages for Colony's breaches. Colony applied for leave to appeal the award, arguing that the arbitrator made errors in law, including the improper implication of contractual terms and misapprehension of evidence.

Court Decision:
The Court of Appeal for British Columbia, presided over by Madam Justice Fenlon, dismissed Colony's application for leave to appeal. The Court held that no extricable questions of law were present and found that the arbitrator correctly applied the legal tests.

Award:
Scott Steel Erectors Inc. was awarded $800,000 in damages for Colony's breach of the quality implied term. The Court found no merit in Colony's grounds for appeal and upheld the arbitral award.