The plaintiff, Canada Bread, sued the defendants (First Gulf and Mallot Creek) for negligence and breach of contract related to a bakery's design and construction.
An initial action was settled, and a release was executed for "known" claims.
Before the release, a fire occurred at the bakery.
Canada Bread's insurer was aware of First Gulf's potential liability for the fire, but Canada Bread itself was not.
Canada Bread subsequently commenced a second action for fire-related damages.
First Gulf brought a summary judgment motion before an arbitrator, arguing the release barred the second action.
The arbitrator dismissed the motion, finding the release only covered "known" claims and that Canada Bread was unaware of First Gulf's fire-related liability at the time of the release.
First Gulf appealed this decision to the Superior Court.
The Superior Court granted leave to appeal on questions of law but ultimately dismissed the appeal, upholding the arbitrator's decision as reasonable.