Financial Services Commission des Commission services financiers of Ontario de l’Ontario

Neutral Citation: 2015 ONFSCDRS 75

FSCO A11-002435

BETWEEN:

MASOOD HEJRAN Applicant

and

PERSONAL INSURANCE COMPANY OF CANADA Insurer

Before: Eban Bayefsky

Heard: By way of written submissions, completed March 25, 2015.

Appearances: Mr. Hejran represented himself Thomas Hughes for Personal Insurance Company of Canada

Issues:

The Applicant, Masood Hejran, was involved in a motor vehicle accident on November 26, 2009. In a decision dated December 11, 2014, I dealt with his claims for statutory accident benefits under the Schedule.¹ I made the following orders, while reserving on the issue of expenses:

Mr. Hejran is not entitled to attendant care benefits.
Mr. Hejran is not entitled to medical benefits.
Mr. Hejran is not entitled to interest.

The issue in this further hearing is:

Is either party entitled its expenses incurred in respect of this arbitration hearing?

Result:

Mr. Hejran shall pay to Personal Insurance Company of Canada arbitration expenses, in the amount of $3,437.80.

EVIDENCE AND ANALYSIS:

The Insurer sought its expenses of the arbitration and provided written submissions to this end on March 9, 2015. Mr. Hejran was to provide any submissions by March 18, 2015, but did not.

Pursuant to Rule 75.2 of the Dispute Resolution Practice Code, an Arbitrator is to consider the following criteria in the awarding of arbitration expenses:

Each party’s degree of success in the outcome of the proceeding
Any written offers to settle made in accordance with Rule 76
Whether novel issues are raised in the proceeding
The conduct of a party or party’s representative that tended to prolong, obstruct or hinder the proceeding, including a failure to comply with undertakings and orders
Whether any aspect of the proceeding was improper, vexatious or unnecessary

In the present case, the Insurer was successful on all of the issues in the arbitration. No offers to settle were exchanged. The proceeding did not raise any novel issues. The Applicant’s conduct (as set out in the pre-hearing letter of August 22, 2013) resulted in some delay in the proceedings. While no aspect of the proceeding was improper, vexatious or unnecessary, as noted in the main decision in this case, the Applicant did not call any evidence at the hearing to support his claim for a treatment plan.

In all of the circumstances, I find that the Insurer is entitled to its expenses of the arbitration.

With respect to the quantum of the Insurer’s expenses, I find the request for disbursements (in the amount of $2,435.47) to be reasonable. The Insurer requested legal fees in the amount of $11,131.65. I find this to be excessive. The hearing was very brief (lasting approximately 3 hours) and the general rule is a ratio of between 1:1 and 1:4 for hearing and preparation time. While the Insurer was fully successful at the hearing, given the relative simplicity of the arbitration, the absence of any settlement offers, and the fact that there was no significant delay or improper conduct on the part of the Applicant, I find that a ratio of 2:1 for hearing and preparation time is reasonable in the circumstances. I, therefore, find that the Insurer is entitled to 9 hours of legal fees at a rate of $111.37 per hour (in accordance with Mr. Hughes’ Bill of Costs), for a total of $1,002.33 in legal fees.

Therefore, pursuant to section 282 of the Insurance Act, R.S.O. 1990, c.I.8, as amended, I hereby order Mr. Hejran to pay to Personal Insurance Company of Canada arbitration expenses in the amount of $3,437.80.

April 14, 2015

Eban Bayefsky Arbitrator

Date