Out-of-province insurer bound by Ontario priority dispute rules after signing Power of Attorney and Undertaking.
The appellant, an out-of-province insurer, appealed an arbitrator's decision finding that the priority provisions in s. 268 of the Insurance Act applied to it for a motor vehicle accident that occurred in Ontario.
The appellant argued that applying the Ontario legislation would have an extra-jurisdictional effect.
The Superior Court of Justice dismissed the appeal, applying the reasonableness standard of review.
The court held that because the accident occurred in Ontario and the appellant had signed a Power of Attorney and Undertaking (PAU), it was bound by the priority provisions of the Insurance Act.
SCJSuperior Court of JusticeAug 22, 2019