Greg P. Bailey

Northbridge General Insurance Corporation appealed an arbitrator's decision that designated it as the priority insurer for accident benefits following a motor vehicle accident.

Northbridge contended that Co-Operators General Insurance Company failed to provide proper notice under section 3(1) of Ontario Regulation 283/95, thereby precluding Co-Operators from asserting Northbridge's priority.

The Superior Court of Justice applied a reasonableness standard of review to the arbitrator's decision, consistent with The Dominion of Canada General Insurance Company v. Unifund Assurance Company.

The court upheld the arbitrator's finding that Co-Operators' initial failure to notify Northbridge directly under section 3(1) was not fatal, as Intact Insurance Company subsequently provided notice to Northbridge under section 10(1) of the Regulation.

The court emphasized the practical realities of priority investigations and the public policy of ensuring timely benefit payments.

The appeal was dismissed, and Northbridge was ordered to pay costs to both respondents.

An appeal concerning whether the abuse of process doctrine prevented Federated from leading evidence that a driver was insured at the time of an accident, despite a prior conviction for driving without insurance.

The driver's vehicle had been insured by Intact, which claimed it had cancelled the policy before the accident.

A priority dispute between the insurers proceeded to arbitration.

The arbitrator permitted Federated to lead evidence that Intact had not followed required cancellation procedures, meaning the driver was in fact insured.

The application judge reversed this decision, but the Court of Appeal allowed the appeal and restored the arbitrator's order, holding that the abuse of process doctrine did not prevent relitigation in these circumstances.

The applicant insurer appealed an arbitrator’s decision barring its statutory loss transfer claim under s. 275 of the Insurance Act on the basis of the equitable doctrine of laches due to delayed notice.

The court held that loss transfer rights under s. 275 are purely statutory and do not attract equitable relief, making the doctrine of laches inapplicable.

Even if laches could apply, the arbitrator’s finding was unreasonable because mere delay without acquiescence or demonstrated prejudice cannot establish the defence.

The respondent failed to prove that the delay impaired its investigation or caused prejudice.

The appeal was allowed and the applicant insurer was permitted to pursue the loss transfer claim.