Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District

2016 BCSC 68 and 2019 BCCA 66, SCC appeal under reserve.

NST was retained by GVSDD to appeal an arbitration award. The appeal to the Supreme Court of Canada arose from an arbitration award, in which Wastech was awarded compensation based on an alleged breach of the duty of good faith in a 20-year relational contract. NST succeeded at all levels in British Columbia in establishing that the arbitration award was based on errors of law, including a misapplication of the leading case, Bhasin. Wastech successfully sought leave to the Supreme Court of Canada, and the matter was heard on December 6, 2019 and is under reserve.

It is expected that the Supreme Court will use this case as an opportunity to clarify the duty of good faith recognized in Bhasin, and also at issue in an Ontario case argued before the court at the same time. The SCC decision is therefore expected to be of significance to all commercial contracts and contract disputes.

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