The parties settled a dispute regarding statutory accident benefits, but a disagreement arose over the execution of the release.
The insurer required the insured's counsel to sign a certificate confirming the release was explained, which the insured refused on the basis of solicitor-client privilege.
The arbitrator found a binding settlement existed, held the insurer's requirement was arbitrary, and ordered payment of the settlement funds plus a special award for unreasonable withholding.
On appeal, the Director's Delegate upheld the finding of a binding settlement and the award of interest, noting that a witnessed release is standard practice.
However, the Delegate rescinded the special award, finding that the insurer's attempt to negotiate the release terms did not constitute unreasonable behaviour warranting a special award.
The appeal was allowed in part.