Financial Services Commission of Ontario
Neutral Citation: 2015 ONFSCDRS 209 FSCO A14-002839
BETWEEN:
WIJEKUMAR KOCHCHERI KARIKUTTI Applicant
and
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Insurer
DECISION ON EXPENSES
Before: Arbitrator Benjamin Drory Heard: By written submissions due July 21, 2015
Appearances: No one filed for Mr. Wijekumar Kochcheri Karikutti Mr. Adam Pennino filed for State Farm Mutual Automobile Insurance Company
Issues:
The Applicant, Mr. Wijekumar Kochcheri Karikutti, was injured in an automobile accident on April 19, 2010, and sought accident benefits from State Farm Mutual Automobile Insurance Company (“State Farm”) under the Schedule.1 I previously dismissed Mr. Karikutti’s Application for Arbitration by Order, dated June 8, 2015. My reasons for doing so were detailed within the Reasons for Decision. At that time, I invited State Farm to submit a written position with respect to its expenses concerning the matter within 30 days of the Order. State Farm has submitted a request for expenses in the amount of $3,437.17. Mr. Karikutti failed to respond to this request.
The issue in this Expense Hearing is:
- Should State Farm be awarded expenses in the amount of $3,437.17?
Result:
- State Farm is awarded expenses in the amount of $3,199.17.
EVIDENCE AND ANALYSIS:
I refer to the Reasons for Decision in my June 8, 2015 Order for a detailed history of the proceedings in this matter. I agree with State Farm’s submission that it was completely successful in this proceeding.
State Farm properly referenced the Expense Regulation, which outlines the criteria an Arbitrator is obligated to consider for the purposes of awarding all or part of expenses incurred respecting an Arbitration proceeding. Among those criteria are (i) each party’s degree of success in the outcome of the proceeding; (ii) the conduct of a party that tended to prolong, obstruct, or hinder the proceeding, including a failure to comply with orders; and (iii) whether any aspect of the proceeding was improper, vexatious, or unnecessary. All of the above are sufficient grounds for an expense award in this case.
State Farm submitted the following Bill of Costs which, although detailed further, is summarized as follows:
| Lawyer | Hours | Proposed Legal Aid Tariff Rate | Total |
|---|---|---|---|
| Adam Pennino | 26.1 | $98.99 | $2,583.63 |
| Natasha Mohammed (Law Clerk) | 5.5 | $45.00 | $247.50 |
| Total | $3,199.17 (HST included) |
State Farm also claimed disbursements of $238.00 for official examiners’ fees.
State Farm is entitled to expenses in this case; the only question is its quantum. I have reviewed Schedule 2 to the General Regulation (O. Reg. 107/99) under the Legal Aid Services Act, 1998, which sets out the maximum hourly rates awardable for counsel and law clerks for cases before this Commission.
I also reviewed the expenses decision in Gresty and Howard Mutual Fire Insurance Company (A99-001152) that counsel referred me to, and am not satisfied that applying a $45.00/hour rate for law clerks’ services is appropriate. However, that does not significantly impact matters, as the balance of State Farm’s submission still fell within the total maximums awardable.
I am not prepared to grant the $238.00 in disbursements requested for official examiners’ fees, as this is not an item specifically allowable under Section 4 of the Expense Regulation. There was not an official proceeding in either event, but I am prepared to award the balance of the claim requested. I was not presented with any mitigating circumstances in favour of the claimant.
EXPENSES:
Therefore, the total expenses award is the $3,437.17 requested, less $238.00, so $3,199.17.
October 19, 2015
Benjamin Drory Arbitrator
Date
Financial Services Commission of Ontario
Neutral Citation: 2015 ONFSCDRS 209 FSCO A14-002839
BETWEEN:
WIJEKUMAR KOCHCHERI KARIKUTTI 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:
- Mr. Wijekumar Kochcheri Karikutti is ordered to pay State Farm an amount of $3,199.17.
October 19, 2015
Benjamin Drory Arbitrator
Date
Footnotes
- The Statutory Accident Benefits Schedule – Accidents on or after November 1, 1996, Ontario Regulation 403/96, as amended.