The applicants, Walter Campbell and Olakemi Sobomehin, sought to set aside an arbitral award of $30,641.72 in favour of Toronto Standard Condominium Corporation No. 2600, alleging fraud under s. 46(1) para. 9 of the Arbitration Act, 1991.
The court found that while there was no actual deceit, the Condominium Corporation engaged in "constructive fraud" by misleading the Campbells into an arbitration that was purportedly about costs but actually adjudicated substantive issues the parties had agreed to remove from the dispute.
This conduct was deemed unconscionable and unfair, justifying the setting aside of the arbitral award.
The Condominium Corporation's cross-applications to enforce the award were dismissed.