Case Overview:
- Parties: Johnson Bros. Corporation (JBros) sought leave to appeal arbitration awards favoring Soletanche Bachy Canada Inc. (SBC).
- Outcome: Application dismissed.
Background:
- JBros subcontracted SBC for marine works on a Toronto project.
- Disputes led to unsuccessful mediation and arbitration under the Subcontract.
- Arbitrator Joel Richter awarded SBC $12M for wrongful termination and $1.98M in costs.
Key Legal Issues:
-
Right to Appeal:
- JBros argued arbitration was “ad hoc” under a 2022 agreement, not bound by the Subcontract’s dispute resolution clause.
- Court found the arbitration incorporated the Subcontract’s final and binding terms (CCDC 40 rules), precluding appeals under the Arbitration Act.
-
Grounds for Leave:
- Reversal of Onus: JBros alleged the Arbitrator shifted the burden to disprove SBC’s claims. Court found no error; evidentiary decisions were proper.
- Weather Delays: Claims required contractual interpretation, not pure legal questions.
- COVID-19 Impacts: Damages were supported by evidence, though not fully provided by JBros.
- Statutory Holdback: Arguments about the Construction Act were raised too late.
Conclusion:
The court upheld the arbitration as final and binding, finding no valid questions of law to justify leave to appeal.
