Court of Appeal for Ontario

Citation: Economical Mutual Insurance Company v. State Farm Mutual Automobile Insurance Company, 2015 ONCA 485 Date: 2015-06-26 Docket: C59972

Before: MacFarland, Lauwers and Huscroft JJ.A.

IN THE MATTER OF the Insurance Act, R.S.O. 1990, c. I.8, as amended

AND IN THE MATTER OF the Arbitration Act, S.O. 1991, c. 17, as amended

AND IN THE MATTER OF an Arbitration

Between:

Economical Mutual Insurance Company Applicant (Appellant on Appeal)

and

State Farm Mutual Automobile Insurance Company Respondent (Respondent on Appeal)

Counsel: Daniel Strigberger and Monika Bolejszo, for the appellant Mark K. Donaldson and Carlie Flynn, for the respondent

Heard and released orally: June 19, 2015

On appeal from the order of Justice Thomas R. Lederer of the Superior Court of Justice, dated October 24, 2014.

Endorsement

[1] The parties here agree that if the broker was negligent in cancelling the policy effective July 26, Economical is bound.

[2] The appellant argues that the arbitrator asked the wrong question when he asked whether changes made to Economical’ s policy at the request of Hasan were properly effected by the broker. He argues that the proper question should have been: “What did she instruct the broker to do?”

[3] In our view, on the facts of this case, it doesn’t matter. The arbitrator did not accept the broker’s evidence when he said: “she must have given it to me” in relation to the July 26 date.

[4] Her evidence was she wanted full coverage until she left. While much of the arbitrator’s reasoning is seriously flawed, he did say clearly that he preferred Mrs. Hasan’s evidence to Pannetta’s and concluded that the broker was negligent in telling the insurer coverage was to be cancelled effective July 26.

[5] The record before the arbitrator supports this finding. While it is true that the issue could have gone the other way, this was a matter for the arbitrator.

[6] The appeal is dismissed.

[7] On the agreement of counsel costs are to the respondent fixed in the sum of $8,500 inclusive of disbursements and H.S.T.

"J. MacFarland J.A."

"P. Lauwers J.A."

"Grant Huscroft J.A."