The appellant teachers' union appealed a Divisional Court decision that quashed an arbitrator's award regarding the interpretation of a wage freeze provision under the Social Contract Act.
The Divisional Court had held that the arbitrator was bound by a previous Court of Appeal decision that upheld a different arbitrator's conflicting interpretation.
The Court of Appeal allowed the appeal, holding that its previous decision only determined that the prior arbitrator's interpretation was not patently unreasonable, not that it was the only correct interpretation.
The Court found that the current arbitrator's interpretation was also not patently unreasonable and reinstated the award.