Cisneros v. State Farm Mutual Automobile Insurance Company, 2003 ONFSCDRS 1

Neutral Citation: 2003 ONFSCDRS 1

FSCO A02-000630

Between:

Carlos Cisneros, Applicant

and

State Farm Mutual Automobile Insurance Company, Insurer

Decision on Expenses

Before: Tanja Wacyk

Heard: December 3, 2002, at the offices of the Financial Services Commission of Ontario in Toronto.

Appearances: No one for Mr. Cisneros Marlett M. Dobson for State Farm Mutual Automobile Insurance Company

Issues:

The Applicant, Carlos Cisneros, was injured in a motor vehicle accident on December 21, 2001. State Farm Mutual Automobile Insurance Company ("State Farm") denied Mr. Cisneros payment of the cost of an orthopaedic mattress, payable as a statutory accident benefit under the Schedule.¹ The parties were unable to resolve their dispute through mediation, and Mr. Cisneros applied for arbitration at the Financial Services Commission of Ontario under the Insurance Act, R.S.O. 1990, c.I.8, as amended.

In addition to the cost of an orthopaedic mattress, claimed pursuant to section 14 of the Schedule, a special award was also claimed pursuant to subsection 282(10) of the Insurance Act (the "Act").

However, Mr. Cisneros failed to attend the two pre-hearings scheduled as a result of his application for arbitration. He also failed to attend the arbitration hearing itself, scheduled for December 3 to 5, 2002.

Consequently, the issues are now the following:

Should Mr. Cisneros' application for arbitration be dismissed?
Is Mr. Cisneros liable to pay an amount to State Farm that does not exceed the amount assessed against State Farm in respect of the arbitration, pursuant to subsection 282(11.2) of the Insurance Act because he commenced an arbitration that is frivolous, vexatious or an abuse of process?
Is Mr. Cisneros liable to pay State Farm's expenses in respect of the arbitration under section 282(11) of the Insurance Act?

Result:

Mr. Cisneros' application for arbitration is dismissed as abandoned.
Mr. Cisneros shall pay State Farm $3,000 pursuant to subsection 282(11.2) of the Insurance Act, because he commenced an arbitration that is vexatious and an abuse of process.
Mr. Cisneros shall pay State Farm $790.77 pursuant to [subsection 282(11)](https://www.canlii.org/en/on/laws/stat/rso-1990-c-i8/latest/rso-1990-c-i8.html#sec282subsec1