Seylynn (North Shore) Phase II GP Ltd. v. Seylynn (North Shore) Properties Phase II Limited Partnership
Seylynn (North Shore) Phase II GP Ltd.
Law Firm / Organization
Kornfeld LLP
Seylynn (North Shore) Properties Phase II Limited Partnership
Law Firm / Organization
Shields Harney

Background:
Seylynn (North Shore) Phase II GP Ltd. (the "GP") and Seylynn (North Shore) Properties Phase II Limited Partnership (the "LP") entered into a partnership agreement for a condominium development project, Seylynn Gardens. The GP withdrew over $2 million as management fees, which the LP disputed. The LP removed the GP as general partner and initiated arbitration to determine the proper interpretation of the management fee provision.

Arbitration Award:
The arbitral tribunal ruled that the GP was not entitled to the management fee withdrawals and ordered financial compensation in favor of the LP, including:

  • Principal award: $2,058,000
  • Pre-judgment interest: $276,873.27
  • Costs: $744,887.50
  • Post-judgment interest: Amount unspecified

Legal Issues:
The GP sought leave to appeal the arbitration award under Section 59 of the Arbitration Act, S.B.C. 2020, c. 2, arguing that the tribunal:

  • Misinterpreted the management fee provision.
  • Failed to consider related agreements.
  • Incorrectly applied contract law principles, including rectification and good faith obligations.

Court Decision:
The Court of Appeal for British Columbia dismissed the GP’s application for leave to appeal, holding that the GP failed to demonstrate an extricable question of law necessary for appellate review. The court emphasized the finality of arbitration awards and found no legal errors in the tribunal’s reasoning.

Court of Appeals for British Columbia
CA50227
Corporate & commercial law
$ 3,079,761
Applicant