Neutral Citation: 2002 ONFSCDRS 43
FSCO A01-000281
FINANCIAL SERVICES COMMISSION OF ONTARIO
BETWEEN:
MALVIA GRAHAM
Applicant
and
COSECO INSURANCE CO./HB GROUP/DIRECT PROTECT
Insurer
REASONS FOR DECISION
Before: David Leitch
Heard: By telephone conference call on February 12, 2002 and subsequent written submissions
Appearances: Jadranka Cavrak for Ms. Graham Catherine Byrne for Coseco Insurance Co./HB Group/Direct Protect
Issues:
The Applicant, Malvia Graham, was injured in a motor vehicle accident on April 16, 1999. She applied for statutory accident benefits from Coseco Insurance Co./HB Group/Direct Protect ("Coseco"), payable under the Schedule.1 Disputes arose which the parties were unable to resolve through mediation and Ms. Graham applied for arbitration. However, at the pre-hearing, Ms. Graham sought to withdraw her application for arbitration. Coseco was prepared to agree to the withdrawal but only if it obtained two awards, one in respect of its assessment fee and another in respect of its arbitration expenses. Ms. Graham disputed Coseco's right to obtain such awards. The pre-hearing letter identified the following two issues for arbitration:
Is Ms. Graham liable to pay an amount to Coseco that does not exceed the amount assessed against Coseco in respect of the arbitration, pursuant to subsection 282(11.2) of the Insurance Act, because she commenced an arbitration that is frivolous, vexatious or an abuse of process?
Is Ms. Graham liable to pay Coseco's expenses in respect of the arbitration under section 282(11) of the Insurance Act, R.S.O. 1990, c. I.8?
Result:
Ms. Graham is not liable to pay an amount to Coseco pursuant to subsection 282(11.2) of the Insurance Act.
Ms. Graham is not liable to pay Coseco's expenses in respect of the arbitration under section 282(11) of the Insurance Act, R.S.O. 1990, c. I.8.
Background:
A Mediator's Report dated June 15, 2000 states that the parties were unable to resolve disputes regarding Ms. Graham's entitlement to income replacement benefits, medical benefits, housekeeping expenses and examination expenses. In accordance with [section 281(1)](https://www.canlii.org/en/on/laws/stat/rso