Financial Services Commission of Ontario
Neutral Citation: 2018 ONFSCDRS 51 Appeal: P16-00062
OFFICE OF THE DIRECTOR OF ARBITRATIONS
Ophelia Ofori (Hyde) Appellant
and
State Farm Mutual Automobile Insurance Company Respondent
BEFORE: Edward Lee
REPRESENTATIVES: Ophelia Ofori (Hyde), on her own behalf Susan Keenan for State Farm
HEARING DATE: February 23, 2018 by teleconference
APPEAL 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 Regulation 664, R.R.O. 1990, as amended, it is ordered that:
- Ms. Ofori shall pay to State Farm a total of $3,000.00 for expenses of the appeal proceeding, inclusive of all legal expenses, disbursements, HST, and preparation for this appeal hearing.
March 12, 2018
Edward Lee Director’s Delegate
Date
REASONS FOR DECISION
I. NATURE OF THE APPEAL
This matter involves the SABS–1996.1
In a decision dated December 28, 2017, I considered Ms. Ofori’s appeal of Arbitrator Bayefsky’s order of July 18, 2016. I dismissed all the grounds raised in Ms. Ofori’s appeal. Subsequently, an expense hearing was requested by State Farm Mutual Automobile Insurance Company (“State Farm”). The expense hearing proceeded by teleconference.
II. BACKGROUND
The arbitration order of July 18, 2016 dismissed Ms. Ofori’s claim in its entirety. Ms. Ofori sought to overturn all of the Arbitrator’s decision, and filed written materials in support of her appeal. State Farm filed written submissions in response. Both parties attended and made oral submissions before me at the hearing of the appeal on November 1, 2017.
III. ANALYSIS
There were no written offers made to settle the expenses of the appeal hearing. None of the other factors listed in section 12(2) of the Expense Regulation2 are relevant. State Farm was entirely successful at the appeal hearing, and I am awarding expenses for the appeal to State Farm.
IV. EXPENSES
In its Bill of Costs, State Farm seeks a total of $7,446.03, representing legal fees, disbursements, and HST for the appeal proceeding. This amount includes 52 hours of legal fees (spread amongst four lawyers, students, and clerks) for preparation and attendance at the appeal hearing which lasted approximately two hours.
Expense decisions of the Director’s Delegates consistently hold that a line-by-line assessment of expenses is neither appropriate nor desirable. A reasonable and global assessment of expenses should be made. In my assessment, I am guided by Delegate Blackman’s decision in Bains and RBC General Insurance Company.3 There he determined the average expense award to successful insurers was $2,812.91. For successful insureds, the average expense award was from $3,389.11 to $4,733.58.
In the present case, Ms. Ofori, the appellant, was self-represented. Her oral and written submissions for the appeal consisted almost entirely of an attempt to adduce new evidence at the appeal level (not permitted under the Dispute Resolution Practice Code), and to re-argue issues that had already been litigated and determined at the arbitration level. Given this, I find the amounts sought by State Farm are somewhat excessive.
Ms. Ofori shall pay to State Farm a total of $3,000.00 for expenses of the appeal proceeding, inclusive of all legal expenses, disbursements, HST, and preparation for this appeal hearing.
Finally, I also note that State Farm included in its Bill of Costs its expenses for the first-level arbitration proceeding. Expenses for the arbitration proceeding had not been determined in the arbitration order which was the subject of the appeal proceeding before me. Thus I have no jurisdiction to grant costs for that arbitration proceeding and make no order in regard to those expenses.
March 12, 2018
Edward Lee Director’s Delegate
Date
Footnotes
- The Statutory Accident Benefits Schedule — Accidents on or after November 1, 1996, Ontario Regulation 403/96, as amended.
- Schedule to the Expense Regulation found in section F of the Dispute Resolution Practice Code.
- (FSCO P09-00005, September 8, 2010)