What's Reasonableness Got To Do With It? Courts Continue To Grapple With The Standard Of Review Of Arbitral Awards Under Appeal

• Published date: 21 February 2025
• Law Firm: McCarthy Tétrault LLP
• Author: The International Arbitration Blog, Adam Kanji, Omair Jafrani and Shona T. Musimbe

Why this Case Matters

The standard of review of appeals arising from domestic arbitration awards is an issue that continues to divide lower courts. Recently, the Ontario Superior Court of Justice addressed the issue in the decision of Burwell v. Wozniak.

While the decision raises interesting issues surrounding the creation of trusts and proprietary estoppel, our focus in this post is the commentary on the standard of review of arbitral awards, and how, in this case, the court determined that the appellate standard of review applied.

Factual Background

Mr. Burwell and Ms. Wozniak were in a relationship from 2010 to 2014. During this time, Mr. Burwell founded Fusebill Inc. In 2011, Mr. Burwell founded a family trust. During a brief separation in that same year, Mr. Burwell sent an email pledging to make Ms. Wozniak the sole beneficiary of his family trust. In an effort to reconcile, Mr. Burwell then appointed Ms. Wozniak as the beneficiary under his trust, which would own all shares of Fusebill.

Ultimately Mr. Burwell continued to hold his own personal shares of Fusebill, alongside the shares his trust owned. When the relationship ended yet again, Ms. Wozniak claimed 50% of Mr. Burwell's personal shares along with the shares held by the trust.

The dispute...