Muhiadin Hussein v. State Farm Mutual Automobile Insurance Company, 2019 ONFSCDRS 10

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

Neutral Citation: 2019 ONFSCDRS 10

Appeal P17-00083

OFFICE OF THE DIRECTOR OF ARBITRATIONS

MUHIADIN HUSSEIN Appellant

and

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Respondent

BEFORE: David Evans

REPRESENTATIVES: Essam Elbassiouni for Mr. Muhiadin Hussein Darrell March for State Farm Mutual Automobile Insurance Company

HEARING DATE: On the record, with submissions received by December 20, 2018

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 Regulation 664, R.R.O. 1990, as amended, it is ordered that:

1. Mr. Muhiadin Hussein shall pay to State Farm Mutual Automobile Insurance Company its legal appeal expenses of $6,500, inclusive of disbursements and HST.

March 5, 2019

David Evans Director’s Delegate

Date

REASONS FOR DECISION

In a decision dated November 7, 2018, I dismissed Mr. Muhiadin Hussein’s appeal of the order of Arbitrator Gueller dated October 27, 2017, wherein she denied his claims for various medical benefits and costs of examinations.

I found that the Arbitrator did not err in law when she excluded Mr. Hussein’s documentary evidence from the hearing, including the OCF-18s that formed the basis of his claims. In those circumstances, I found Mr. Hussein’s claims were properly denied.

State Farm Mutual Automobile Insurance Company now seeks its legal appeal expenses.

In my decision, I set out time lines for the expenses of the appeal, updated by my letter of December 21, 2018, sent after State Farm served its Bill of Costs. I gave Mr. Hussein until January 21, 2019 to respond. Since he has not done so, I will proceed based on the Bill of Costs filed.

The first criterion for an award of expenses pursuant to Rule 75.2 of the Dispute Resolution Practice Code is success. State Farm was successful in resisting the appeal, so it is entitled to its expenses.

State Farm claims legal fees of $6,093.49 at the Legal Aid Rate, the only rate payable for insurance counsel pursuant to Rule 78.1. The Bill appropriately sets out the Legal Aid Rate for each lawyer and law clerk.

State Farm also claims $2,502.25 in disbursements. I see nothing objectionable in the disbursements, except the QuickLaw fee does seem somewhat high at almost $2,000.

The total claimed inclusive of HST is $9,387.89. As has often been said, we do not do line-by-line analyses, but award an amount that seems reasonable.

However, the amount claimed seems somewhat high compared to most legal expenses allowed to insurers on appeal, and the appeal was not that long or complicated. Accordingly, I allow $6,500 in total.

Mr. Hussein shall pay to State Farm Mutual Automobile Insurance Company its legal appeal expenses of $6,500, inclusive of HST and disbursements.

March 5, 2019

David Evans Director’s Delegate

Date