DATE: 20000713 DOCKET: C31212 COURT OF APPEAL FOR ONTARIO CARTHY, GOUDGE AND O'CONNOR JJ.A. BETWEEN: ) ) Paul J.J. Cavalluzzo I.W.A.-CANADA, LOCAL 2693 ) for the appellant ) Applicant ) (Appellant) ) ) and ) I.H. Fraser ) for the respondent LONGLAC WOOD INDUSTRIES INC. ) ) Respondent ) (Respondent in ) Appeal) ) ) Heard: December 20 and ) 21, 1999 On appeal from the judgment of the Divisional Court (OLeary, Campbell and Salhany JJ.) dated September 18, 1998. GOUDGE J.A.: [1] This is an appeal by the Union, I.W.A.-Canada, Local 2693 from the decision of the Divisional Court dismissing an application to quash the arbitration award between the union and respondent employer. It was heard together with the appeal in London Life Insurance Company v. Dubreuil Brothers Employees Association, 2000 OCA C31391 (London Life) and raises essentially the same issue. For the reasons given in London Life, supra, I would reach the same conclusion as I did there. In the result I would dismiss the appeal. [2] The issue presented to the arbitrator was the arbitrability of the employees claim for weekly indemnity payments under the insurance policy, which the collective agreement required the employer to maintain. The arbitrator interpreted the collective agreement to oblige the employer to do no more than maintain and pay for the cost of the insurance policy. He therefore concluded that the employees claim for benefits under the policy was inarbitrable and indicated that the employee was required to sue the insurer for that relief. [3] The Divisional Court held that it was open to the arbitrator to interpret the collective agreement as he did and dismissed the application for judicial review. [4] On appeal the appellant argued that in light of the case law discussed in London Life and particularly Pilon v. International Minerals and Chemical Corp. (1996), 31 O.R. (3d) 210 (C.A.), disputes between an employee and an insurer over benefits payable under an insurance policy that is required by a collective agreement are within the exclusive jurisdiction of the arbitrator even where the employer has fully complied with the collective agreement. For the reasons given in London Life I disagree. In this case the employees claim against the insurer for benefits under the policy does not fall within the arbitrators exclusive jurisdiction. [5] The arbitrators disposition of the grievance in this case depended upon his interpretation of the collective agreement. That decision is properly accorded curial deference, on the standard of patent unreasonableness. Here it was not patently unreasonable for the arbitrator to interpret the collective agreement as he did. There was no obligation on the employer beyond providing and paying for the insurance plan. The union clearly failed to persuade the arbitrator that the employer had fallen short of its obligation. [6] Since the claim against the insurer was beyond the arbitrators jurisdiction and the grievance raised no arbitrable claim against the employer, the arbitrator properly dismissed it. The Divisional Court was correct in dismissing the application for judicial review. [7] I would therefore dismiss the appeal with costs including those of the motion seeking leave to appeal. Released: July 13, 2000 S.T. Goudge J.A. I agree J.J. Carthy J.A. I agree D. OConnor J.A. |