Executive Summary: Key Legal and Evidentiary Issues

• Disciplinary action upheld against a managing broker for failing to ensure clear communication during his medical leave.

• The appellant's claim of oppression under section 102 of the Societies Act was rejected due to lack of breach of reasonable expectations.

• Procedural fairness arguments, including inadequate notice and delay, were dismissed as unsubstantiated.

• The court confirmed that the disciplinary committee’s findings were based on evidence before it.

• Appeal Board was not legally required to provide reasons under the FVREB’s bylaws.

• The judiciary reaffirmed a limited role in reviewing internal affairs of voluntary associations, unless legal rights are breached.

The background of the disciplinary proceedings

Jasbir Sandhu, a managing broker and licensed real estate agent, was a member of the Fraser Valley Real Estate Board (FVREB), a voluntary society. In early 2016, Mr. Sandhu took medical leave and arranged for Mr. Bassi to act as the interim managing broker. He communicated this leave internally via a messaging system (Touchbase) and at a staff meeting. During his absence, agent Kamal Gill encountered a transactional dispute resulting in her paying $8,000 to another agent, Mr. Dhatt. Unaware that Mr. Sandhu was on leave or that Mr. Bassi was his temporary replacement, Ms. Gill attempted to contact Mr. Sandhu directly in India.

Upon return, Mr. Sandhu assisted Ms. Gill in filing complaints and legal claims against Mr. Dhatt. In 2020, the FVREB sanctioned Mr. Dhatt. However, Mr. Dhatt subsequently filed a complaint against both Ms. Gill and Mr. Sandhu. While Ms. Gill resolved the matter, disciplinary proceedings against Mr. Sandhu proceeded.

Findings of the disciplinary committee and internal appeal

Following a hearing in October 2021, the FVREB’s Professional Conduct Committee concluded that Mr. Sandhu had failed to establish policies and adequate communication regarding his absence and the role of the replacement broker. This was deemed a breach of the Canadian Real Estate Association Code of Conduct. The Committee reprimanded Mr. Sandhu, issued a caution letter, and ordered him to pay part of the hearing costs. An internal appeal to the FVREB Appeal Board was dismissed in March 2022, with the penalty amended to include mandatory education and further costs. The Appeal Board did not provide written reasons for its decision, consistent with FVREB’s bylaws.

Petition before the Supreme Court of British Columbia

Mr. Sandhu filed a petition in the Supreme Court seeking to set aside both the Hearing and Appeal Decisions. He alleged oppressive and unfairly prejudicial conduct under s. 102 of the Societies Act and procedural unfairness under s. 105. Justice Iyer found that Mr. Sandhu’s reasonable expectations had not been breached. The court held that he had been informed of the allegation in the notice of hearing, that evidence was properly considered, and that procedural delay did not constitute an abuse of process.

Appeal to the Court of Appeal for British Columbia

Mr. Sandhu appealed, asserting that the trial judge erred by not finding oppression or inadequate notice and by misapprehending the evidence. The Court of Appeal dismissed all grounds of appeal.

It confirmed that:

• Mr. Sandhu had no reasonable expectation of a particular outcome or that the Appeal Board would provide reasons, as per FVREB bylaws.

• The disciplinary committee’s findings were supported by some evidence regarding the communication of Mr. Sandhu’s leave and Mr. Bassi’s role.

• The delay in processing the complaint was not attributable to the Board and did not amount to unfairness.

• There was no reversal of the burden of proof; rather, Mr. Sandhu failed to produce sufficient evidence to rebut the allegations.

The court emphasized that under s. 102 of the Societies Act, relief is only available where conduct breaches a member's reasonable expectations and is oppressive or unfairly prejudicial. The judge correctly applied the test, and the FVREB’s decision was found to be procedurally and substantively fair. The appeal was therefore dismissed.