Financial Services Commission of Ontario
Commission des services financiers de l’Ontario
Neutral Citation: 2007 ONFSCDRS 12
FSCO A03-000642
BETWEEN:
ZAHRA GAROUSPOUR
Applicant
and
PEMBRIDGE INSURANCE COMPANY
Insurer
DECISION ON EXPENSES
Before:
Anne Sone
Heard:
January 17, 2007 at the offices of the Financial Services Commission of Ontario in Toronto.
Appearances:
Herbert Brodkin for Mrs. Garouspour
James V. Leone for Pembridge Insurance Company
Khalil Ismaeli for himself
Issues:
The Applicant, Zahra Garouspour, was injured in a motor vehicle accident on November 8, 2001. In a decision dated October 20, 2005, I dealt with her claims for statutory accident benefits under the Schedule.1 I made the following orders, while reserving on the issue of expenses:
Mrs. Garouspour is entitled to receive a medical benefit of $598, pursuant to the first treatment plan of Dr. Komeilinejad.
Mrs. Garouspour is entitled to receive a medical benefit of $75 pursuant to the second treatment plan of Dr. Komeilinejad.
Mrs. Garouspour is not entitled to payments for housekeeping and home maintenance services.
Mrs. Garouspour is not entitled to payment for a Functional Capacity Evaluation.
Mrs. Garouspour is entitled to interest on the medical benefit outstanding of $598, pursuant to the first treatment plan of Dr. Komeilinejad, at the rate of 2 per cent per month compounded monthly, from February 22, 2002.
Mrs. Garouspour is entitled to interest on the medical benefit outstanding of $75 pursuant to the second treatment plan of Dr. Komeilinejad, at the rate of 2 per cent per month compounded monthly, from March 27, 2002.
The issue in this further hearing is:
- Is either Mrs. Garouspour or Pembridge entitled to expenses incurred in respect of this arbitration hearing?
EVIDENCE AND ANALYSIS:
After I issued the above-noted orders, Pembridge requested a hearing relating to entitlement to expenses. In addition to seeking expenses against Mrs. Garouspour, Pembridge also sought expenses directly against Mr. Ismaeli, Mrs. Garouspour's former representative. As a result, a Notice was sent to the parties, including Mr. Ismaeli which stated the following:
Pursuant to section 282(11.2) of the Insurance Act an arbitrator may make an order requiring a person representing an insured person for compensation in an arbitration proceeding to personally pay all or part of any expenses awarded against a party if the arbitrator is satisfied that,
(a) in respect of a representative of an insured person, the representative commenced or conducted the proceeding without authority from the insured person or did not advise the insured person that he or she could be liable to pay all or part of the expenses of the proceeding;
(b) in respect of a representative of an insured person, the representative causes expenses to be incurred without reasonable cause by advancing a frivolous or vexatious claim on behalf of the insured person; or
(c) the representative caused expenses to be incurred without reasonable cause or to be wasted by unreasonable delay or other default.
Pursuant to section 282(11.4) this formal Notice of Rescheduled Expense Hearing serves as notification to Mr. Khalil Ismaeli that he is being given a reasonable opportunity to make representations to the arbitrator respecting his conduct of Mrs. Garouspour's case.
During the expense hearing the parties requested an opportunity to discuss settlement amongst themselves. These discussions were fruitful. The parties appeared before me and advised that they had reached a settlement of the expense issue. They requested that I issue an order dismissing the application for expenses. I advised them that I was willing to grant their request.
January 26, 2007
Anne Sone
Arbitrator
Date
Financial Services Commission of Ontario
Commission des services financiers de l’Ontario
Neutral Citation: 2007 ONFSCDRS 12
FSCO A03-000642
BETWEEN:
ZAHRA GAROUSPOUR
Applicant
and
PEMBRIDGE INSURANCE COMPANY
Insurer
ARBITRATION ORDER
Under section 282 of the Insurance Act, R.S.O. 1990, c.I.8, as amended, it is ordered that:
- The application for expenses of this arbitration proceeding is dismissed.
January 26, 2007
Anne Sone
Arbitrator
Date
Footnotes
- The Statutory Accident Benefits Schedule — Accidents on or after November 1, 1996, Ontario Regulation 403/96, as amended.