The applicants appealed an arbitration award that upheld the termination of their Canadian Tire dealer contract and applied to set aside the award on procedural fairness grounds.
The termination arose after the dealer processed a bulk sale of nearly $1 million in air fryers to a reseller and subsequently failed to reverse the transaction as requested, instead substituting other products.
The Ontario Superior Court of Justice found that the arbitrator applied the correct legal test for wilful blindness and did not breach procedural fairness.
Consequently, the court dismissed the appeal and upheld the arbitrator's decision.