Case Overview:
The case centered on a commercial lease dispute. The issue was the determination of rent for a renewal term based on the market value of Kingsgate Mall land under the lease terms.

Legal Arguments and Issues:
Key issues included:

1. Whether the 2022 arbitration panel (the “2022 Majority”) erred in interpreting a 1999 arbitration decision (“1999 Award”) regarding “immediate use” for market valuation.
2. Whether the 2022 Majority improperly declined to apply issue estoppel, allowing them to reinterpret the lease’s valuation clause.
   The appellants, Kingsgate Property Ltd. and Beedie Development LP, argued the 1999 Award established the market value as based on the “most expeditious and certain” lawful use (1.0 Floor Space Ratio or FSR). The respondent, the Board of Education, argued the land’s value should reflect conditional use at 3.0 FSR.

Court Decision:
The British Columbia Supreme Court found the 2022 Majority misinterpreted the 1999 Award and should have applied issue estoppel. It set aside the 2022 Award, reinstated the 1999 interpretation, and set the land’s market value at $20,000,000. Rent was fixed at $1,650,000 annually for the renewal term.

Costs and Awards:
The court vacated an order requiring Beedie to provide rent security pending appeal. Costs for the arbitration were remitted to the tribunal. Litigation costs were awarded in favor of Kingsgate Property Ltd. and Beedie Development LP.