The appellant appealed a trial judge's refusal to award augmented costs under s. 258.6(2) of the Insurance Act following a successful motor vehicle accident claim.
The trial judge had concluded the provision did not apply because the respondent municipality was not an insurer.
The Court of Appeal admitted fresh evidence demonstrating that the municipality's legal department was acting on behalf of its insurer, who had received notice of the claim and failed to respond to repeated requests to mediate.
The appeal was allowed, and the trial costs award was increased by $20,000 to reflect the insurer's failure to mediate.
