Recently, the Divisional Court released its appeal decision in the case of Leon v. Dealnet Capital Corporation, which also deals with interesting aspects of the law surrounding arbitration agreements in the employment law context.
Mediation-Arbitration is common in the Labour Law world, but still underused in the Employment Law world. It is a two-stage process in which the parties 1) attempt to settle their dispute through mediation and, if that fails, 2) use binding arbitration to resolve any issues remaining after mediation.
For many decades, the standard of review of a commercial arbitration decision on appeal to a court has been reasonableness. There are good policy reasons for this. Making arbitral decisions more difficult to reverse on appeal increases certainty for parties who have contracted for arbitration rather than litigation as their preferred method of dispute resolution. It also enhances the viability of arbitration as an alternative forum to the courts, reducing the burden on overstrained judicial resources.