What is the legal test for awarding compensation to a doctor who was found to have been misdiagnosed?

The awarding of compensation is discretionary and must be exercised judicially. The reasonableness of the assessment or awarding of compensation to the investigating body is, therefore, subject to judicial review. The right of appeal and the right to examine the reasonableness of the exercise of that discretion is expressly wide when the consequences that someone is or can be deprived of his rights, in this case, his right to practice medicine. See Barrette v. The Queen, 1976 CanLII 180 (SCC), [1977] 2 S.C.R. 121 at 125. The standard of review is whether the assessment is reasonable, and not whether there has been clear error.