Williston Navigation Inc. v. BCR Finav No. 3 et al

Williston Navigation Inc. v. BCR Finav No. 3 et al

The court dismissed Williston's application for leave to appeal because the challenged issues were findings of fact or mixed fact and law and did not satisfy s.31 prerequisites; however the court found the Arbitrator committed arbitral error in summarily fixing costs without providing Williston a meaningful opportunity to test the reasonableness of BC Rail's solicitors' accounts and without disclosure of the solicitors' file, and therefore remitted the costs award to the Arbitrator for reconsideration; BC Rail's petition to enforce the cost award was dismissed as moot.

Citation
2007 BCSC 190
Parties
Petitioner/respondent: Williston Navigation Inc.; Respondent/petitioner: BCR Finav No. 3 Ltd.; Respondent/petitioner: BC Rail Ltd.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
9 February 2007
Procedural Posture
Commercial Arbitration Petitions Under the Commercial Arbitration Act / Post Arbitration Judicial Review and Applications for Leave to Appeal
Outcome
Williston's application for leave to appeal the arbitration award dismissed; cost award remitted to the Arbitrator for reconsideration; BC Rail's petition dismissed as moot; each party to bear its own costs.
Legal Topics
Arbitral Error, Leave to Appeal, Enforcement of Arbitral Awards, Interpretation of Commercial Contract, Costs Assessment, Natural Justice
Source Language
English
Arbitration Contract Law Civil Procedure Costs Arbitral Error Leave to Appeal Enforcement of Arbitral Awards Interpretation of Commercial Contract +2 more

Case Brief

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Parties

Williston Navigation Inc.

Petitioner/respondent

BCR Finav No. 3 Ltd.

Respondent/petitioner

BC Rail Ltd.

Respondent/petitioner

Procedural Posture

Commercial Arbitration Petitions Under the Commercial Arbitration Act / Post Arbitration Judicial Review and Applications for Leave to Appeal

Legal Issues

  1. 1 Whether the Arbitrator breached Article 7.1 by failing to take all commercially reasonable steps to negotiate rate increases
  2. 2 Whether the Arbitrator committed arbitral error by summarily awarding costs without giving the opposing party a meaningful opportunity to test solicitor accounts and without disclosure of solicitor's file
  3. 3 Whether leave to appeal should be granted under s.31 of the Commercial Arbitration Act for questions of law arising from the award

Ratio Decidendi

The court dismissed Williston's application for leave to appeal because the challenged issues were findings of fact or mixed fact and law and did not satisfy s.31 prerequisites; however the court found the Arbitrator committed arbitral error in summarily fixing costs without providing Williston a meaningful opportunity to test the reasonableness of BC Rail's solicitors' accounts and without disclosure of the solicitors' file, and therefore remitted the costs award to the Arbitrator for reconsideration; BC Rail's petition to enforce the cost award was dismissed as moot.

Court Disposition

Williston's application for leave to appeal the arbitration award dismissed; cost award remitted to the Arbitrator for reconsideration; BC Rail's petition dismissed as moot; each party to bear its own costs.

Orders

  • Application for leave to appeal arbitration award dismissed
  • Cost award remitted to the Arbitrator for reconsideration pursuant to s.30 of the Commercial Arbitration Act