Insurer's expenses reduced due to excessive time spent pursuing an unproven fraud conspiracy theory.
Following the dismissal of the applicants' claims for statutory accident benefits, the insurer sought $33,500 in expenses.
The arbitrator found that while the insurer was completely successful in defending the claims, it had spent excessive time pursuing an unproven conspiracy theory regarding a fraud ring.
The arbitrator reduced the allowable preparation and hearing time, disallowing expenses for the days devoted entirely to the conspiracy theory.
The applicants were ordered to pay a total of $12,013.36 in expenses, apportioned between them based on their respective involvement in the hearing.
OFSCDRSOntario Financial Services Commission - Dispute Resolution ServicesMay 22, 2008
