NST partners Stephen R. Schachter, K.C. and Julia K. Lockhart achieved a significant win for Beedie Development Group (“Beedie”) and its affiliate Kingsgate Property Ltd. In its decision released on March 10, 2026: Vancouver School District No. 39 v. Kingsgate Property Ltd., 2026 BCCA 98, the British Columbia Court of Appeal dismissed two appeals brought by the Vancouver School Board (“VSB”) in a long-running dispute over rent payable under a commercial lease.
The dispute concerns a long-term lease for the Kingsgate Mall lands in Vancouver. A 2022 arbitration panel valued the property at approximately $116.5 million by referencing potential conditional uses under zoning, which would have dramatically increased the rent payable by Beedie to $9.6 million per year. Beedie and Kingsgate successfully challenged that award in the Supreme Court of British Columbia, arguing that the arbitrators were bound by findings made in a 1999 arbitration interpreting the same lease. The chambers judge agreed, finding that the tribunal should have applied issue estoppel and set aside the award. VSB appealed that decision.
On appeal, the majority of the Court upheld the chambers judge’s decision that the arbitration panel erred in refusing to apply issue estoppel arising from a prior 1999 arbitration interpreting the lease. The Court of Appeal confirmed the Supreme Court’s decision not to remit the matter to arbitration, and instead set the value of the lands at $20 million, and the rent at $1.65 million per year. The Court of Appeal also unanimously affirmed an earlier decision of the Supreme Court staying Beedie’s obligations under the arbitration award until the appeal was resolved.
The Court of Appeal also finally resolved the question of the standard of review for arbitration awards in view of the Supreme Court of Canada’s decision in Canada (Minister of Citizenship and Immigration) v Vavilov, 2019 SCC 65, determining that questions of law are to be reviewed for correctness.
