Neutral Citation: 1993 ONICDRG 33

File No. A-001177

ONTARIO INSURANCE COMMISSION

BETWEEN:

NORMA SHEHADEH

Applicant

and

THE GENERAL ACCIDENT ASSURANCE COMPANY OF CANADA

Insurer

ORDER FOR EXPENSES

The Applicant seeks an award of the expenses she has incurred in this arbitration. An award for expenses may be made under section 282(11) of the Insurance Act, which provides as follows:

The arbitrator may award to the insured person such expenses incurred in respect of an arbitration proceeding as may be prescribed in the regulations to the maximum set out in the regulations.

The prescribed expenses and amounts are set out in Schedule 1 of the Dispute Resolution Practice Code and in Ontario Regulation 664 (R.R.O. 1990).

In Ralph McCormick v. Economical Mutual Insurance Company (O.I.C. File No. A-000139, dated October 2, 1991), arbitrator Susan Naylor made the following comments about expenses, with which I agree:

The discretion to award expenses should be exercised, having regard to the intent and purpose of the legislative scheme. The arbitration process has been established under the Insurance Act, as amended, in order to facilitate applicants' access to relatively inexpensive, speedy and informal adjudication of disputes regarding no-fault benefits. The discretion to award expenses should be exercised in accordance with this objective, having regard to the individual circumstances of each case.

Accordingly, it is appropriate to award an applicant his or her expenses, unless, in the circumstances of the particular case, it is determined that the application for appointment of an arbitrator was manifestly frivolous or vexatious, or that the applicant's conduct unreasonably prolonged the proceedings.

The Director of Arbitrations approved this statement of the principles guiding an award of expenses in the appeal decision in Vito Luigi Calogero v. The Co-Operators General Insurance Company (O.I.C. File No. P-000251, issued February 13, 1992).

This is an appropriate case in which to award the Applicant her expenses. In the event that the parties are unable to agree on the amount of expenses, I remain seized of this matter and either party may apply for assessment of the expenses before me.

Order:

The Applicant is entitled to her expenses incurred in this arbitration hearing in accordance with section 282(11) of the Insurance Act and Ontario Regulation 664, R.R.O. 1990, Dispute Resolution Expenses.

June 9, 1993

Frederika M. Rotter

Senior Arbitrator

Date