In Kohut v. Yagelniski, 2026 BCSC 714, Justice Wilson illustrated the court’s limits to reviewing a family arbitral award reached through the “last best offer” arbitration process. After reviewing the appellant’s grounds for appeal, Justice Wilson concluded that when parties engage in the last best offer arbitration process, they agree to waive their right to challenge an arbitral award, no matter how unexpected or adverse.

Case Background

Why Kohut v. Yagelniski Matters for Family Arbitration

In Kohut v. Yagelniski, 2026 BCSC 714, two former spouses agreed to resolve the outstanding issues in their family matter through the arbitration process rather than by proceeding to trial. By the time arbitration began, the parties had resolved the parenting matters at issue, but a number of significant financial issues remained outstanding. One week into the arbitration process, the parties agreed to use the last best offer arbitration process, in place of the evidentiary arbitration process they had been using.

Family Arbitration in British Columbia

What Is Last Best Offer Arbitration?

Arbitration is one of the more commonly used alternative dispute resolution (ADR) methods in family law. Often arbitration is chosen to avoid the cost and delay associated with the litigation process. Unlike mediation, where a neutral third party assists with negotiating a dispute, an arbitrator will hear the parties’ cases before making a final decision on the case. Though an arbitrator is a neutral party, an arbitrator’s decision is more similar to that of a judge. Once the arbitration process is complete, an arbitral award can be enforced in the way a court order is enforced. 

An arbitration can be resolved using the last best offer arbitration process, sometimes also referred to as final offer arbitration. With a last best offer arbitration, each party submits a final offer, and the arbitrator selects the “the best,” or most appropriate offer. Rather than weighing the evidence or arguments of the parties, the arbitrator simply makes a choice between Offer A and Offer B.

The last best offer process is often used to resolve disputes in a quick and reasonable way. As an arbitrator’s reasons are not required with the last best offer process, parties can achieve finality without the extra time and expense associated with detailed arbitral reasons.

How Last Best Offer Arbitration Worked

In Kohut, the parties submitted their last best offer on February 17, 2025. After reviewing the parties’ final offers, the arbitrator selected the respondent’s last offer and issued an arbitral award resolving the parties’ outstanding issues.

Following the arbitral award, the appellant filed a notice of appeal alleging that, among other things, the arbitrator had erred by:

• declaring certain property as excluded property rather than “family assets”
• selecting an offer that dismissed the appellant’s claims to retroactive and prospective spousal support
• failing to consider the respondent’s actual income
• exceeding the scope of the arbitrator’s authority

Justice Wilson conducted a thorough review of the appellant’s grounds of appeal before dismissing the appeal in its entirety. Justice Wilson ultimately concluded that there were no reasons or findings of the arbitrator that could give rise to a review. This was importantly not because the appellant’s arguments were weak, but because there was no decision available for review. Very simply, the arbitrator in Kahut had selected one party’s offer over the other. 

The Conclusion Reached

Kohut v.Yagelniski

Although Justice Wilson dismissed the appeal, he expressly acknowledged sympathy for the appellant’s position and confirmed that a different result could have been available to the appellant if she was before the court.

Ultimately, Justice Wilson’s decision in Kohut v.Yagelniski, 2026 BCSC 714 confirms that when parties knowingly agree to participate in the last best offer arbitration process they will be held to that bargain.