Catherine A. Korte

The appellant, an out-of-province insurer, appealed an arbitrator's decision finding that the priority provisions in s. 268 of the Insurance Act applied to it for a motor vehicle accident that occurred in Ontario.

The appellant argued that applying the Ontario legislation would have an extra-jurisdictional effect.

The Superior Court of Justice dismissed the appeal, applying the reasonableness standard of review.

The court held that because the accident occurred in Ontario and the appellant had signed a Power of Attorney and Undertaking (PAU), it was bound by the priority provisions of the Insurance Act.

This case involves an appeal from an arbitrator's decision in an insurance priority dispute.

The arbitrator found that an employer (insured by Old Republic) made a vehicle available for an employee's regular use at the time of an accident, requiring Old Republic to pay statutory accident benefits.

The employee, a short-haul truck driver, was injured while driving his mother-in-law's car to work, but had permission to sleep in a company truck the night before a haul.

The Superior Court of Justice dismissed Old Republic's appeal, affirming the arbitrator's decision.

The court also clarified that correctness is the appropriate standard of review for such priority decisions where there is no significant factual issue to be decided.