Here One Minute, Gone The Next: BC Court Of Appeal Overturns Chambers Judge's Decision To Grant Leave To Appeal An Arbitral Award In Richmont Mines Inc. v. Teck Resources Limited

In its recent decision in Richmont Mines Inc. v. Teck Resources Limited, the British Columbia Court of Appeal emphasized the strict limits on the availability of appeal for arbitral awards.i Arbitral awards are difficult to appeal and for good reason: one of the principal benefits of arbitration is that the parties involved can avoid the costs, time, and multiple appearances associated with litigating before the courts. Arbitration is, after all, intended to be an alternative means of resolving legal disputes.

Overview

Richmont v. Teck is an appeal of an order granting the Respondent, Richmont Mines Inc. ("Richmont"), leave to appeal an arbitral award made in favour of the Appellant, Teck Resources Limited ("Teck"). The arbitral award concerned four patented mineral claims on two parcels of land for which Richmont was a successor in interest, and Teck was a successor in interest as to a 2% royalty. The central question was whether or not Teck's 2% royalty extended over 100% or 69% of the gold produced from the mineral claims, based on an interpretation of the word "Property" in the agreement. The arbitrator ultimately sided with Teck in finding that the royalty extended over 100% of the gold produced.

Following the arbitral award, Richmont applied for leave to appeal under section 31 of British Columbia's Arbitration Act (the "Act"), which provides:

A party to an arbitration, other than an arbitration in respect of a family law dispute, may appeal to the court on any question of law arising out of the award if all of the parties to the arbitration consent, or the court grants leave to appeal. In an application for leave under subsection (1)(b), the court may grant leave if it determines that the importance of the result of the arbitration to the parties justifies the intervention of the court and the determination of the point of law may prevent a miscarriage of justice, the point of law is of importance to some class or body of persons of which the applicant is a member, or the point of law is of general or public importance. ii Ontario's Arbitration Act, 1991, contains a similar provision addressing leave to appeal of arbitral awards at section 45:

If the arbitration agreement does not deal with appeals on questions of law, a party may appeal an award to the court on a question of law with leave, which the court shall grant only if it is satisfied that, the importance to the parties of the matters at stake in the arbitration justifies an...