The Alberta Court of Appeal recently considered an arbitration award in which the arbitrator had decided the rights of non- parties to the arbitration. The Court held that the arbitrator had no authority to determine the rights of non-parties. The court set aside the award and remitted the matter back to the arbitrator for a determination in accordance with the court's decision.
The process and logic applied by the Court provides a useful precedent for considering the powers of arbitrators and the courts when the rights of non-parties are affected by an arbitral decision.
This is an important decision, not only in relation to the authority of arbitrators, but also the authority of the courts.
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