Financial Services Commission of Ontario
Commission des services financiers de l’Ontario
Neutral Citation: 2007 ONFSCDRS 4
Appeal P04-00040
OFFICE OF THE DIRECTOR OF ARBITRATIONS
CITADEL GENERAL ASSURANCE COMPANY
Appellant
and
JERZY OLSZEWSKI
Respondent
Before:
David Evans
Representatives:
Claude Blouin for Citadel General
Philip B. Morrissey for Mr. Olszewski
Hearing Date:
December 18, 2006 by teleconference
EXPENSES ORDER
Under section 283 of the Insurance Act, R.S.O. 1990, c.I.8, as amended, it is ordered that:
Mr. Olszewski shall pay Citadel General’s arbitration expenses in the amount of $15,917.23.
Mr. Olszewski shall pay Citadel General’s appeal expenses in the amount of $5,731.16.
January 8, 2007
David Evans Director’s Delegate
Date
REASONS FOR DECISION
I. BACKGROUND AND ANALYSIS
Citadel General brought this appeal.
Mr. Olszewski was injured in a motor vehicle accident on November 27, 1990 and received weekly benefits under the SABS–19901 until November 26, 1993. He applied for mediation more than two years after the insurer’s refusal to pay. A preliminary issue hearing confirmed that he was not allowed to proceed with the arbitration, and this was upheld on appeal.2 Mr. Olszewski later reapplied for arbitration. On a further preliminary issue hearing, the arbitrator, in an order dated December 16, 2004, held that Mr. Olszewski could proceed to arbitration. I subsequently revoked that order in a decision dated December 23, 2005, including the arbitrator’s award of expenses to Mr. Olszewski.
The parties agreed that I should hear and decide the expenses of both the arbitration and appeal. They also agreed that Citadel General was entitled to its expenses.
With respect to the arbitration expenses, Mr. Olszewski disputed the hours claimed for two lawyers — Mr. Blouin and Mr. George Kanellakos — to attend the September 10, 2004 arbitration hearing in London. Mr. Blouin agreed that only his attendance should have been included. I note that his claimed hours also appear to include travel time. I find that the total hours claimed for Mr. Blouin should be reduced from 33.5 to 30 hours at his hourly rate of $92.34.
As for preparation time, Mr. Olszewski also submitted that the total hours claimed by counsel acting for Citadel General were more than double the hours for which he billed. Mr. Blouin submitted that Citadel General had the onus and had to advance the case, which might explain some of the additional time, but agreed that Mr. Olszewski had a point. I find that the total hours billed are out of proportion, especially in relation to Mr. Kanellakos. Accordingly, I reduce the 129.2 hours billed by Mr. Kanellakos — for both his attendance at the London hearing and for preparation — to 50 at his hourly rate of $73.87. I have not reduced the hours claimed for the other counsel and law clerks involved. I calculate that Citadel General is entitled to total legal fees plus GST of $13,727.23.
With respect to the arbitration disbursements, other than for the portion that was billed by an external printing house, Mr. Olszewski submitted that the photocopy charge appeared to be high at $0.25 a page. However, I have no principled reason to deviate from what has been accepted as a standard rate. The parties did agree that the disbursements should not have included a courier charge for delivery to the adjuster. Accordingly, I find that the disbursements including GST total $2,190.00.
In conclusion, Mr. Olszewski shall pay Citadel General’s arbitration expenses in the amount of $15,917.23.
Mr. Olszewski did not dispute Citadel General’s Bill of Costs for the appeal. Accordingly, Mr. Olszewski shall pay Citadel General’s appeal expenses in the amount of $5,731.16.
January 8, 2007
David Evans Director’s Delegate
Date