Arbitration Examples


Entitlement to a Watertight Condominium – Construction
During rainstorms, particularly from the southwest, dripping water occurred in a homeowner’s condominium. There were hundreds of similar units but only one came under the dispute resolution program of the Alberta New Home Warranty Program. Water leakage came from a defective vinyl siding installation, for which the siding sub-contractor ultimately took responsibility and remedied the problem. Using the results of an independent water test expert retained by the arbitrator allowed the homeowner to first validate the problem and after repair, to then declare the problem resolved – by arbitration.

Which Offer to Purchase Should Prevail? – Real Estate
When two realtors from the same office had competing purchasers and time-sensitive offers to purchase, it was incumbent upon the first purchaser (in the sequence of events) to act decisively and consummate the acceptance. In this situation, where there was delay or confusion about withdrawn offers, the arbitration award decided in favour of the least confusing set of facts and the actions that were most in accordance with industry standards. Resolved by arbitration.

What is the proper standard of care? – Construction
In an upper-end price range home, a dispute arose about the paint colour specified in the purchase agreement. The paint applied was a close approximation and had the potential to create an undesirable contrast with the homeowner’s designer furniture. Paint application was likewise required to correspond to the quality and design of the home. Other custom finishes in the home, such as specialty wooden doors, floors and cupboards required professional attention to detail. While any individual item may have caused disagreement, a proliferation of concerns caused a feeling of ill will that required an arbitration to bring closure.

Is a Profit-Based Bonus Due? – Business
A publicly traded Canadian Corporation purchased all of the issued and outstanding shares of a smaller, privately held company. The purchase agreement stipulated that bonuses were to be paid during the subsequent three years, based on increased profit of the public corporation. During the three-year period other companies were acquired, giving rise to a dispute over the liability to pay bonuses on the increased profit resulting from the subsequent corporate acquisitions. Resolved by arbitration.

What costs are relevant to determine marketing fee? – Marketing
A broker arranged an export arrangement for the sale of natural gas with a fee payable based of the price received at the delivery point. A dispute arose whether the value of fuel gas supplied or purchased to transport the gas from the field to the international delivery point was deductible in calculating the amount on which the fee was payable. The parties submitted the matter to arbitration and asked the arbitrator to make a decision with reasons that either included or excluded the transportation costs. After a preliminary meeting, documents only were submitted to have the matter resolved – by arbitration.

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