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70 MANITOBA LAW JOURNAL |VOLUME 35 NUMBER 1 While the arbitrator was correct in holding that he could impute knowledge of the employer’s practice in relation to calculating the vacation benefits, he erred in law “by failing to consider and make a finding” on whether the union had intended its representation (of silence or acquiescence) to affect its legal relations with the employer. This omission may have been due to the arbitrator’s failure to identify the essential element of intent “as a legal prerequisite to the imposition of estoppel”: 32 [T]he arbitrator made no finding of any kind on the issue of intent. He made no finding to the effect that the union intended by its representation, which was one of “silence/acquiescence”… to affect its legal relations with the employer. The award is silent on this issue. As explained above, before an estoppel could be imposed the union must have intended that its representation affect its legal relations with the employer, and there must be a finding to that effect. Otherwise, an essential ingredient of the estoppel mix would be missing. Thus, I must conclude that in his imposition of an estoppel against the union the arbitrator erred in law, by failing to consider and make a finding on the question of the union’s intent to affect legal relations with the employer. 33 In November 2010, the Supreme Court of Canada granted the employer leave to appeal. 34 III. ANALYSIS Like the Manitoba Court of Appeal in Nor-Man, other appellate courts in Canada have reviewed arbitrators’ and labour boards’ elaboration of the principles of estoppel on a correctness standard. In Otis Canada Inc v International Union of Elevator Constructors, Local 50, 35 Ontario’s Divisional Court reviewed the decision of an Ontario Labour Relations Board Vice-Chair who, sitting as an arbitrator on a construction industry grievance, had allowed a union’s grievance in respect of the employer’s decision to stop paying employees travel time and expenses for maintenance work. The OLRB had determined that, in light of its long-standing practice of paying travel time and expenses, the employer was estopped from insisting on the terms of the collective agreement. The Divisional Court applied a standard of correctness to its review of the OLRB’s decision: Estoppel is an equitable doctrine initiated by the Courts of Equity. It is not something over which the OLRB has any unique or special expertise and, therefore, the application or nonapplication of the doctrine of estoppel is not a matter requiring the deference of the Court. 32 33 34 35 Ibid at 82. It is possible that the arbitrator’s omission of a finding regarding the union’s intent was “involuntary” and resulted from a deficiency in his reasons. My analysis will proceed on the basis that the omission results from the arbitrator’s deliberate choice not to consider proof of the union’s intent as a required ingredient for estoppel. Ibid at paras 77-78. [2010] SCCA No 275. (2000) 136 OAC 60 (Div Ct), [2000] OLRB Rep 778 [Otis Canada].
Nor-Man Regional Health Authority 71 However, the applicability or non-applicability of the doctrine is a matter going to the jurisdiction of the OLRB and is subject to the standard of correctness. 36 Other courts have adopted a deferential standard of review. In a recent judgment reviewing a decision of the Ontario Labour Relations Board on a construction industry grievance arbitration, the Ontario Divisional Court rejected the employer’s submission that the Board’s application of the doctrine of estoppel should be subjected to correctness review: While the application of the doctrine of estoppel is partly a legal question, its application here raises issues of mixed law and fact. Moreover, the Board and labour arbitrators have a long history of applying this doctrine when adjudicating grievances (references omitted)… Therefore, the Board is entitled to deference in the application of this doctrine, and the standard of reasonableness applies to the estoppel issue as well as the interpretation and application of the Act and the agreements. 37 In my view, the Manitoba Court of Appeal’s decision in Nor-Man is vulnerable on appeal for several reasons. First, the Court of Appeal has taken too broad a view of the concept of the question of general law described by the Supreme Court in Dunsmuir, unduly expanding the reach of this concept and the scope of correctness review. Second, in concluding that the elaboration of the ingredients of promissory estoppel was a question of law outside the arbitrator’s specialized expertise, the Court of Appeal did not appreciate the special and significant influence of the labour relations context on those ingredients. Finally, the conception of the courts’ role in the judicial review of arbitral awards that underlies the union’s position and the Court of Appeal’s judgment undermines the successful operation of labour arbitration as an autonomous legal system, which requires restraint on the part of reviewing courts. 36 37 Ibid at para 30. See also International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, Local D331 v La Farge Canada Inc, 66 Alta LR (3d) 396, [1999] 5 WWR 712 (QB), appeal dismissed on other grounds, 74 Alta LR (3d) 346, [2000] 2 WWR 724 (CA) where the Court found, at para 29, that a board of arbitration did not have “unique expertise” in applying and interpreting principles of promissory estoppel. See also United Nurses of Alberta, Local 118 v Capital Care Group Inc, 2006 ABQB 344 at paras 9-10, 58 Alta LR (4th) 384: the arbitration board’s “statement of the legal requirements of waiver and estoppel” are subject to correctness review; and Brandt Tractor Ltd v Pardee Equipment Employees Assn, 2006 ABQB 327 at para 25. Jacobs Catalytic Ltd. v International Brotherhood of Electrical Workers, Local 353 (2008), 91 OR (3d) 20 at para 39, [2008] CLLC 220-056 (Div Ct), rev’d on other grounds 2009 ONCA 749. See also Maritime Electric Co v International Brotherhood of Electrical Workers (IBEW), Local 1432 (1993), 112 Nfld & PEIR 119, [1993] PEIJ No 123, where the Prince Edward Island Supreme Court-Appeal Division reviewed a board of arbitration’s decision that the circumstances of a grievance established a promissory estoppel on a standard of patent unreasonableness.
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Nor-Man Regional Health Authority 71<br />
However, the applicability or non-applicability <strong>of</strong> the doctrine is a matter going to the<br />
jurisdiction <strong>of</strong> the OLRB and is subject to the standard <strong>of</strong> correctness. 36<br />
Other courts have adopted a deferential standard <strong>of</strong> review. In a recent<br />
judgment reviewing a decision <strong>of</strong> the Ontario Labour Relations Board on a<br />
construction industry grievance arbitration, the Ontario Divisional Court rejected<br />
the employer’s submission that the Board’s application <strong>of</strong> the doctrine <strong>of</strong> estoppel<br />
should be subjected to correctness review:<br />
While the application <strong>of</strong> the doctrine <strong>of</strong> estoppel is partly a legal question, its application<br />
here raises issues <strong>of</strong> mixed law and fact. Moreover, the Board and labour arbitrators have a<br />
long history <strong>of</strong> applying this doctrine when adjudicating grievances (references omitted)…<br />
Therefore, the Board is entitled to deference in the application <strong>of</strong> this doctrine, and the<br />
standard <strong>of</strong> reasonableness applies to the estoppel issue as well as the interpretation and<br />
application <strong>of</strong> the Act and the agreements. 37<br />
In my view, the Manitoba Court <strong>of</strong> Appeal’s decision in Nor-Man is<br />
vulnerable on appeal for several reasons. First, the Court <strong>of</strong> Appeal has taken too<br />
broad a view <strong>of</strong> the concept <strong>of</strong> the question <strong>of</strong> general law described by the<br />
Supreme Court in Dunsmuir, unduly expanding the reach <strong>of</strong> this concept and the<br />
scope <strong>of</strong> correctness review. Second, in concluding that the elaboration <strong>of</strong> the<br />
ingredients <strong>of</strong> promissory estoppel was a question <strong>of</strong> law outside the arbitrator’s<br />
specialized expertise, the Court <strong>of</strong> Appeal did not appreciate the special and<br />
significant influence <strong>of</strong> the labour relations context on those ingredients. Finally,<br />
the conception <strong>of</strong> the courts’ role in the judicial review <strong>of</strong> arbitral awards that<br />
underlies the union’s position and the Court <strong>of</strong> Appeal’s judgment undermines<br />
the successful operation <strong>of</strong> labour arbitration as an autonomous legal system,<br />
which requires restraint on the part <strong>of</strong> reviewing courts.<br />
36<br />
37<br />
Ibid at para 30. See also International Brotherhood <strong>of</strong> Boilermakers, Iron Ship Builders, Blacksmiths,<br />
Forgers and Helpers, Local D331 v La Farge Canada Inc, 66 Alta LR (3d) 396, [1999] 5 WWR 712<br />
(QB), appeal dismissed on other grounds, 74 Alta LR (3d) 346, [2000] 2 WWR 724 (CA) where<br />
the Court found, at para 29, that a board <strong>of</strong> arbitration did not have “unique expertise” in<br />
applying and interpreting principles <strong>of</strong> promissory estoppel. See also United Nurses <strong>of</strong> Alberta,<br />
Local 118 v Capital Care Group Inc, 2006 ABQB 344 at paras 9-10, 58 Alta LR (4th) 384: the<br />
arbitration board’s “statement <strong>of</strong> the legal requirements <strong>of</strong> waiver and estoppel” are subject to<br />
correctness review; and Brandt Tractor Ltd v Pardee Equipment Employees Assn, 2006 ABQB 327 at<br />
para 25.<br />
Jacobs Catalytic Ltd. v International Brotherhood <strong>of</strong> Electrical Workers, Local 353 (2008), 91 OR (3d)<br />
20 at para 39, [2008] CLLC 220-056 (Div Ct), rev’d on other grounds 2009 ONCA 749. See also<br />
Maritime Electric Co v International Brotherhood <strong>of</strong> Electrical Workers (IBEW), Local 1432 (1993), 112<br />
Nfld & PEIR 119, [1993] PEIJ No 123, where the Prince Edward Island Supreme Court-Appeal<br />
Division reviewed a board <strong>of</strong> arbitration’s decision that the circumstances <strong>of</strong> a grievance<br />
established a promissory estoppel on a standard <strong>of</strong> patent unreasonableness.