In Pietrasz v. Eminata Group the BC Supreme Court confirmed that arbitrators have jurisdiction to award punitive damages in bad faith claims. The claim arose under an employment contract following dismissal without cause. The court said the bad faith allegation and resulting claim for punitive damages arose from a second employment contract and “thus nothing alleged falls outside the scope of the arbitration clause. The court stayed its proceedings in favour of arbitration.
(The decision also deals with an alleged conflict between the arbitration clause and the choice of law and jurisdiction clause. See the separate post on that point.)