Financial Services Commission of Ontario - Dispute Resolution Services
Neutral Citation: 2019 ONFSCDRS 31
Appeal P18-00030
OFFICE OF THE DIRECTOR OF ARBITRATIONS
OPTIMUM INSURANCE COMPANY INC. Appellant
and
MELINDA MUHI Respondent
BEFORE: Edward Lee
REPRESENTATIVES: George Wray for Optimum Insurance Company Ashu Ismail for Ms. Muhi
HEARING DATE: Determined on the record
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:
- Optimum Insurance Company shall pay to Ms. Muhi the total amount of $3,750.00 for appeal legal expenses, inclusive of HST and disbursements.
June 20, 2019
Edward Lee Director’s Delegate
REASONS FOR DECISION
In a decision dated January 21, 2019, I dismissed Optimum’s appeal of the order of Arbitrator Tanaka, dated April 20, 2018, wherein she determined Ms. Muhi was catastrophically impaired.
I found the Arbitrator did not err in law when she permitted certain documents to be entered into the evidence at the hearing. Nor did she err in law when she concluded Ms. Muhi was catastrophically impaired.
Ms. Muhi now seeks her legal appeal expenses. I set out timelines for the parties to exchange and provide me with submissions and supporting documentation in regard to this issue. Both sides have done so.
I find the only relevant criterion for awarding expenses in this matter is each party’s degree of success in the outcome of the proceeding. None of the other criteria listed in Rule 75 of the Dispute Resolution Practice Code are relevant.
Ms. Muhi seeks total legal expenses for the appeal proceeding in the amount of $23,052.00 inclusive of legal fees, disbursements, and HST. Optimum submits that the total amount of $3,699.44 is reasonable.
It is accepted law that a line-by-line analysis of expenses is neither desirable nor appropriate. Rather, the Delegate should conduct an overall assessment of expenses based on reasonableness. In this regard, I note that the Appellant’s submission is unsupported by any documentation.
The issues under appeal were of average complexity. The appeal hearing was conducted in the period of one morning. There is nothing in the record to suggest that the amount proposed by the Appellant is reasonable.
Instead, I find it reasonable to award the Appellant the sum of the $3,750.00 for legal fees, disbursements and HST, taking into the account the average awards made to insureds as noted in the decision of Bains and RBC General Insurance Company.1
Accordingly, Optimum Insurance Company shall pay to Ms. Muhi the total amount of $3,750.00 for appeal legal expenses, inclusive of HST and disbursements.
June 20, 2019
Edward Lee Director’s Delegate