Pamela Quesnel

Following the successful summary dismissal of six actions for accident benefits as statute-barred, the defendant insurer sought costs.

The plaintiffs argued against costs, citing the novelty of the issues and the defendant's means.

The court rejected these arguments, noting the plaintiffs took a calculated risk and made meritless bad faith claims.

The court found the defendant's claimed costs, which were lower than partial indemnity, to be fair and reasonable, awarding a total of $113,500 across the six actions.

The plaintiffs were injured in motor vehicle accidents and sought statutory accident benefits from their insurers.

After disputes arose, the plaintiffs applied to the Financial Services Commission of Ontario (FSCO) for mediation.

When 60 days passed without a mediator being appointed, the plaintiffs commenced civil actions.

The insurers moved to strike or stay the actions, arguing that under s. 281(2) of the Insurance Act, mediation must actually be attempted and fail before an action can be brought.

The Court of Appeal dismissed the insurers' appeals, holding that the 60-day time limit in the legislation is mandatory, and mediation is deemed to have failed if not concluded within that period, freeing the insured to commence a court action.

The court determined costs arising from four similar insurance motions brought by separate defendants in related actions.

The plaintiffs sought partial indemnity costs of $36,500.

The court found that a deduction was required because some counsel time related to unargued Charter applications rather than the motions themselves.

Applying the principles from Hunt v. TD Securities Inc., the court declined to award substantial indemnity costs and instead reduced the requested amount by $8,000.

The plaintiffs were awarded $28,500 plus HST, payable equally among the defendants.

The plaintiffs, injured in motor vehicle accidents, applied for mediation through the Financial Services Commission of Ontario regarding entitlement to statutory accident benefits.

Mediation was not scheduled within 60 days of filing their applications, and the regulator refused to issue reports declaring mediation had failed, asserting the 60‑day period began only once a mediator was appointed.

The plaintiffs commenced court actions and the insurers moved to strike the claims for lack of jurisdiction.

The court held that Rule 19 of the Dispute Resolution Practice Code imposes a mandatory requirement that mediation be concluded within 60 days of filing the mediation application.

Because that period had expired, mediation was deemed to have failed and the plaintiffs were not required to obtain a failed mediation report or pursue internal appeals or judicial review before commencing their actions.