The appellant builder appealed an arbitrator's final award on damages and costs following a failed real estate transaction.
Previously, a Superior Court judge had set aside the arbitrator's initial liability award, finding the respondent buyers liable for anticipatory breach, and remitted the matter for damages assessment.
On remand, the arbitrator ignored the court's binding findings, created a legal fiction of 'contributory breach of contract,' and limited the builder's damages to the forfeited deposits without hearing evidence.
The Divisional Court allowed the appeal, holding that arbitrators are bound by the law and appellate court directions.
The award was set aside and remitted to a new arbitrator to properly assess damages based on the difference between the contract and resale prices.