Stephen J. Kelly

An insurer appealed a loss transfer arbitration decision that apportioned fault for a snowmobile–automobile collision under the Insurance Act regime.

The arbitrator determined that the Fault Determination Rules did not apply to the circumstances and instead assessed liability using ordinary negligence principles, finding the snowmobile operator primarily responsible and the automobile driver partially responsible.

On appeal, the insurer argued the arbitrator erred in law by concluding the collision fell outside the regulatory fault rules.

The court held that the arbitrator’s determination involved questions of mixed fact and law and was therefore outside the limited right of appeal restricted to questions of law.

Applying a deferential standard of reasonableness, the court found no reviewable error and upheld the arbitration award.

The appellant insurer appealed an order holding it responsible for the first $200,000 of damages payable to the plaintiffs, who were intentionally struck and injured by the insured's vehicle.

The insurer argued it was not obliged to indemnify the insured due to his intentional criminal act under s. 118 of the Insurance Act.

The Court of Appeal dismissed the appeal, holding that ss. 258(1) and (4) of the Act create an absolute liability on the part of the insurer toward innocent third parties, which is not dependent on the insured's right to indemnity.

The insured was injured in a motor vehicle accident and received weekly income benefits from her automobile insurer, as well as disability benefits from her employer's group plan.

The automobile insurer reduced her weekly income benefits by the gross amount of her disability benefits.

The insured argued that only the net after-tax amount should be deducted.

An arbitrator agreed with the insured, finding that deducting the gross amount was unfair.

On appeal, the Director's Delegate rescinded the arbitration order, holding that the plain language of section 12(4)(b) of the Schedule requires the deduction of the full amount of the disability benefits received by or available to the insured, regardless of the tax consequences.

The applicant sought weekly, death, and funeral benefits on behalf of his deceased father, who was involved in two minor motor vehicle accidents in December 1992 and subsequently experienced a rapid decline in health, dying in June 1993.

The arbitrator found that while the accidents caused an initial inability to perform essential tasks, entitling the estate to weekly benefits for a limited period, they did not directly or indirectly cause the death.

Medical evidence suggested an underlying malignancy was the likely cause of the rapid deterioration and death.

Claims for death benefits, funeral expenses, and a special award were dismissed, but the applicant was awarded expenses of the arbitration.