The appellant employer appealed a Divisional Court decision that quashed an arbitration board's ruling.
The arbitration board had concluded it lacked jurisdiction under the collective agreement to award aggravated or punitive damages for an unjust dismissal grievance.
The Divisional Court held the standard of review was correctness and that the board erred.
The Court of Appeal allowed the appeal, finding that the pragmatic and functional approach dictated a standard of patent unreasonableness due to strong privative clauses and the board's expertise in interpreting collective agreements.
The Court of Appeal concluded the board's decision was not patently unreasonable and restored its ruling.
