An insurer appealed an arbitrator’s refusal to dismiss a statutory loss transfer application brought approximately 11 years after a motor vehicle accident.
The court held that the application was not barred by the two‑year limitation period under s. 5(1)(b) of the Limitations Act, 2002 because the limitation period runs from the day after a first‑party insurer requests indemnity from the second‑party insurer.
However, the court found that the equitable doctrine of laches can apply to delayed statutory loss transfer claims where the scheme possesses an equitable character.
The court further held that acquiescence constitutes a stand‑alone branch of laches and does not require proof of prejudice.
The first‑party insurer’s lengthy and unexplained delay, combined with knowledge of its claim, amounted to acquiescence and barred the loss transfer claim.
