Alison Scott

The appellants sought a stay of proceedings in favour of arbitration under s. 15 of the Arbitration Act, R.S.B.C. 1996, c. 55, after the court-appointed receiver commenced a civil claim to collect amounts allegedly owed under contracts containing mandatory arbitration clauses.

The Supreme Court of Canada dismissed the appeal, holding that a court-appointed receiver may be a party to a debtor's pre-receivership arbitration agreement, but that an arbitration agreement may be found inoperative under s. 15(2) where enforcing it would compromise the orderly and efficient resolution of a court-ordered receivership under the Bankruptcy and Insolvency Act.

The majority applied a two-part framework: the technical prerequisites for a mandatory stay were met, but the arbitration agreements were inoperative because the multiple overlapping arbitral proceedings contemplated would compromise the objectives of the BIA.

The concurring judges agreed on the result but reasoned that the Receivership Order itself authorized the receiver to sue in court and thereby disclaim the arbitration agreements.

The appellant employee was dismissed without just cause after ten years of service.

He complained to the Director of Labour Standards, who ordered reinstatement and lost wages under s. 67A of the Labour Standards Code.

The Labour Standards Tribunal upheld this decision.

The employer successfully appealed to the Appeal Division, which held that the provisions conferring this power on the Tribunal violated s. 96 of the Constitution Act, 1867.

On appeal to the Supreme Court of Canada, the Court applied the Residential Tenancies test and held that while the Tribunal exercises a judicial function broadly conformable to that of s. 96 courts at Confederation, it does so as a necessarily incidental aspect of the broader policy goal of providing minimum standards of protection for non-unionized employees.

The appeal was allowed and the legislation was upheld as intra vires the province.

The Attorney General of Nova Scotia appealed a decision of the Nova Scotia Court of Appeal which found that the powers of the Nova Scotia Residential Tenancy Board were ultra vires the province as trenching on s. 96 of the Constitution Act, 1867.

The Supreme Court of Canada, in a brief oral judgment, dismissed the motion for leave to appeal and granted the motion to quash, with Estey J. dissenting.