Arbitrator lacked jurisdiction over insurer benefits dispute.
The appeal concerned whether a labour arbitrator had exclusive jurisdiction to determine an employee’s entitlement to long term disability benefits payable under an insurance policy maintained pursuant to a collective agreement.
The court held that recent jurisprudence, including Pilon, did not extend arbitral jurisdiction to a dispute between an employee and an insurer over policy benefits where the issue was the insurer’s liability under the policy.
The arbitrator also erred in joining the insurer as a party defendant where no dispute properly implicating the insurer was before him.
The appeal was dismissed and the Divisional Court’s order quashing the award was upheld.
Sun Life Assurance Company of Canada v. National Automobile, Aerospace, Transportation and General Workers Union of Canada (CAW-Canada), 2000 ONCA 1338