Thursday, October 14, 2010

BC Supreme Court decision on promissory estoppel in labour arbitration

In a recent decision Telus Communications Inc. v. TWU http://www.courts.gov.bc.ca/jdb-txt/SC/10/14/2010BCSC1429.htm, the British Columbia Supreme Court had occasion to review the doctrine of promissory estoppel and its application in labour arbitration. The court confirmed that there must be a finding that the promissor intended to affect legal relations and that the representation must have been unambiguous and precise for a promissory estoppel to be established.
The case is a good reminder to ensure that statements are clear and free of ambiguity; and that, even where an employer or a union says that it has no intention of enforcing its legal rights under an agreement, they may still assert those rights unless there was an intention to alter them.

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