John L. Stout

The applicant employer sought judicial review of a labour arbitrator's interim award ordering it to make ex gratia payments to a grieving employee whose sick leave benefits had been terminated.

The Divisional Court held that while the arbitrator's interpretation of the Labour Relations Act as granting jurisdiction for the interim award was unreasonable, his alternative reliance on the collective agreement was not patently unreasonable.

The interim award was upheld and the application for judicial review was largely dismissed.

The appellant employer appealed a Divisional Court decision dismissing its application for judicial review of an arbitral award.

The arbitrator had ruled that the employer was obligated under the collective agreement to reimburse employees for the newly enacted Ontario Health Premium.

The Court of Appeal held that the standard of review for the arbitrator's decision was patent unreasonableness, even though the arbitrator interpreted a statute of general application, because the statutory interpretation was secondary to interpreting the collective agreement.

The Court found the arbitrator's award was not patently unreasonable and dismissed the appeal.