REASONS FOR DECISION

Before: Jeffrey Rogers Heard: December 17, 2010, at the offices of the Financial Services Commission of Ontario in Toronto Appearances: Mr. Jonathan B. Schrieder, solicitor for State Farm Mutual Automobile Insurance Company

Background:

The Applicant, Saira Azam, claims that she was injured in a motor vehicle accident on November 7, 2006, and that she is therefore entitled to lost educational expenses, payable by State Farm Mutual Automobile Insurance Company (“State Farm”) under section 20 of the Schedule.¹ State Farm refused to pay her claim and the parties were unable to resolve this dispute by mediation. Mrs. Azam then applied for arbitration at the Financial Services Commission of Ontario under the Insurance Act, R.S.O. 1990, c.I.8, as amended.

A pre-hearing was held on March 23, 2010. Mrs. Azam and her counsel attended. At the pre-hearing, the date for the hearing was set for September 1, 2010. Counsel for Mrs. Azam attended on September 1, 2010, but Mrs. Azam did not attend. The Arbitrator was not satisfied that Mrs. Azam had been properly served with the Notice of Hearing. The Arbitrator therefore ordered that a new date for hearing be scheduled. The new date for the hearing was set for December 17, 2010 and the Commission delivered a Notice of Hearing dated September 28, 2010.

On November 26, 2010, counsel for Mrs. Azam brought a motion to be removed from the record. That motion was granted. The date for the hearing remained unchanged.

Issues:

The issues in this hearing are:

Is Mrs. Azam entitled to receive lost educational expenses in the amount of $9,164.20, pursuant to section 20 of the Schedule?
Is Mrs. Azam entitled to interest for the overdue payment of benefits, pursuant to section 46(2) of the Schedule?
Is either party liable to pay the other’s expense of the arbitration, pursuant to section 282(11) of the Insurance Act?

Result:

Mrs. Azam’s application is dismissed.
Mrs. Azam shall pay State Farm its expenses of the arbitration in the amount of $750, inclusive of HST.

EVIDENCE AND ANALYSIS:

Mrs. Azam did not attend the hearing and no one attended on her behalf. I am satisfied that the Notice of Hearing dated September 28, 2010 was properly served on Mrs. Azam at her last address as required by Rule 5.7 of the Dispute Resolution Practice Code. Since Mrs. Azam provided no evidence to prove entitlement to the claimed benefit, her application is dismissed.

EXPENSES:

State Farm sought its expenses of the arbitration. State Farm is entitled to its expenses because of its complete success and the fact that Mrs. Azam’s failure to participate rendered the proceeding unnecessary. I fix in the amount at $750, inclusive of disbursements and HST.

January 26, 2011

Jeffrey Rogers Arbitrator

Financial Services Commission of Ontario

Neutral Citation: 2011 ONFSCDRS 13 FSCO A09-002467

BETWEEN:

SAIRA AZAM Applicant

and

STATE FARM MUTUAL AUTOMOBILE 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 arbitration is dismissed.
Mrs. Azam shall pay State Farm its expenses of the arbitration in the amount of $750, inclusive of HST.