Faiza Ikram

The Court of Appeal for Ontario considered whether arbitrators may order a higher-priority automobile insurer to reimburse a lower-priority insurer for pre-arbitration expenses incurred in handling a Statutory Accident Benefits (SABs) claim, outside the specific circumstances set out in Ontario Regulation 283/95.

The court held that, except in cases of improper deflection as provided in s. 2.1(7) of the regulation, arbitrators do not have authority to order such reimbursement.

The appeal was allowed, restoring the arbitrator’s decision that Unifund was not required to reimburse Echelon for its pre-arbitration expenses.

The appellant, who was deemed catastrophically impaired following a motor vehicle accident, appealed a Licence Appeal Tribunal (LAT) decision dismissing his claim for attendant care benefits.

The Divisional Court found that the LAT Vice-Chair erred in law by providing inadequate, conclusory reasons and conflating the test for 'reasonable and necessary' expenses with procedural non-compliance.

The court set aside the LAT decision and remitted the matter for a fresh hearing before a differently constituted tribunal.

The applicant sought judicial review of a Licence Appeal Tribunal decision regarding statutory accident benefits.

The Divisional Court declined to exercise its discretion to hear the application, finding that the applicant ought to have pursued a statutory appeal under s. 11(6) of the Licence Appeal Tribunal Act, 1999, which limits appeals to questions of law.

The court held there were no exceptional circumstances to justify bypassing the statutory appeal mechanism and declined to convert the application into an appeal.

The application was dismissed without prejudice to the applicant seeking an extension of time to pursue a statutory appeal.