Introduction

On August 30, 2017 the Supreme Court of Newfoundland and Labrador dismissed an application by the province under Sections 14 and 34(2)(a)(iii) of the Arbitration Act. The court held that the parties had legally contracted out of the act, narrowing the circumstances in which a court could set aside an arbitral award. The decision furthers the general theme of recent Canadian jurisprudence – including the Supreme Court of Canada's decisions in Creston Moly Corp v Sattva Capital Corp and the more recent Teal Cedar Products Ltd v British Columbia – which has emphasised party autonomy and deference to reasonable arbitral decisions. The decision confirms that sophisticated parties can craft a dispute resolution process that deviates from the strictures of provincial and federal legislation, as long as the agreed process does not unduly infringe on the courts' inherent jurisdiction and provides for a process that protects the principles of fundamental justice.

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