The appellants successfully sued the respondents for damages from a motor vehicle accident.
Prior to trial, the respondents' insurer twice refused the appellants' requests to participate in mandatory mediation under the Insurance Act, claiming the injuries did not meet the statutory threshold.
The trial judge awarded partial indemnity costs, finding the insurer's refusal was a genuine available position.
The Court of Appeal allowed the appeal, holding that participating in mediation is a mandatory statutory obligation with no exceptions.
The Court increased the trial costs award by $40,000 as a remedial penalty for the insurer's failure to mediate.
