Peter D. Kazdan

The appellant insurer sought a stay of an arbitrator's order requiring it to pay interest on medical benefits from the date the applications or invoices were received.

The insurer argued that interest should only run from the date of the arbitrator's decision, relying on previous case law.

The Director's Delegate denied the stay request, finding that the insurer failed to demonstrate hardship and that staying the order would prejudice the respondent insured, given the compensatory nature of the interest provisions and the lengthy delay since the claims arose.

The applicant was injured in a motor vehicle accident and applied for arbitration for statutory accident benefits.

The insurer moved to dismiss the arbitration on the basis that the applicant had already commenced a court proceeding and had failed to mediate the issues in dispute.

The arbitrator found that the application was premature because the applicant had not sought mediation, which is a mandatory prerequisite under the Insurance Act.

The arbitration was dismissed as an abuse of process due to the applicant's counsel's repeated failure to comply with undertakings to withdraw the court action and mediate the claims.

The applicant was ordered to pay the insurer's $3,000 assessment fee and $609.37 in legal expenses.