May 2009

Numerous jurisdictions, both inside and outside of Canada, permit arbitrators to grant equitable relief. This power, however, is potentially subject to two caveats: first, limitations in the arbitration agreement, and second, restrictions in the applicable arbitration rules. These arbitration rules are either adopted by the parties or prescribed in the applicable legislation.

British Columbia has been slower to cede jurisdiction over equitable remedies to arbitrators. However, that issue was recently decided by the British Columbia Court of Appeal in Hayes Forest Services Limited v. Teal Cedar Products Ltd in June of this year. The remainder of this article examines the evolution of equitable relief in arbitration proceedings both in British Columbia and elsewhere.