Financial Services Commission of Ontario

Commission des services financiers de l'Ontario

Neutral Citation: 2016 ONFSCDRS 131

Appeal: P15-00010

OFFICE OF THE DIRECTOR OF ARBITRATIONS

LYNDA FEDERICO Appellant

and

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Respondent

BEFORE: David Evans

REPRESENTATIVES: David S. Wilson for Ms. Lynda Federico Jonathan Schrieder for State Farm Mutual Automobile Insurance Company

HEARING DATE: April 13, 2016, by teleconference

APPEAL EXPENSES ORDER

Under section 283 of the Insurance Act, R.S.O. 1990 c. I.8 as it read immediately before being amended by Schedule 3 to the Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014, and Ontario Regulation 664, as amended, it is ordered that:

1. State Farm Mutual Automobile Insurance Company shall pay to Ms. Lynda Federico her legal appeal expenses in the amount of $2,500, inclusive of disbursements and HST.

May 2, 2016

David Evans Director's Delegate Date

REASONS FOR DECISION

I. NATURE OF THE APPEAL

In a decision dated January 21, 2016, I allowed the appeal brought by Ms. Federico of Arbitrator Huberman's January 6, 2015 decision. I found that the Arbitrator had provided only conclusory reasons for refusing Ms. Federico a special award under s. 282(10) of the Insurance Act. Accordingly, I returned the issue of entitlement to and, depending on that determination, the amount of a special award to arbitration for redetermination before a different arbitrator.

Ms. Federico now seeks her legal appeal expenses.

II. BACKGROUND

Ms. Federico was successful on appeal. There was no dispute that she is entitled to her appeal expenses, or that her counsel's fee should be the maximum of $150.

The total amount she claims for fees, disbursements and HST is $2,338.89, aside from the preparation for and attendance at the expense hearing itself.

The hours Ms. Federico claims for counsel time, including preparation for the appeal, attendance at the appeal, and preparation of the bill of costs, total 10.4 hours. The total for disbursements, including the appeal fee, comes to around $575.

State Farm takes issue with a few items listed for the counsel fee, which would reduce the time claimed to approximately 9 hours. State Farm also submits that a couple of the disbursements might be excessive. However, contrary to Rule 79.2(b) of the Dispute Resolution Practice Code (Fourth Edition – Updated January 2014), it had not provided a written response to the Bill of Costs, which was served at the end of January 2016.

In any event, as has often been stated, most recently in State Farm Mutual Automobile Insurance Company and Waldock, (FSCO P15-00068, March 18, 2016), a line-by-line assessment of the expenses claimed is not appropriate. Rather, a global assessment of reasonable expenses should be made.

I find that the amount claimed as appeal expenses by Ms. Federico is very reasonable. Some additional time should be allotted for the preparation and attendance at the expense hearing.

Accordingly, I find that a total of $2,500 is reasonable for Ms. Federico's legal appeal expenses, inclusive of disbursements and HST.

May 2, 2016

David Evans Director's Delegate Date