Ruth Anne Henneberry

The court considered materials relating to approval of a proposed settlement involving an injured minor and related Family Law Act claims.

The proposed global settlement totalled $30,000 and included allocations for legal fees, disbursements, parental claims, and repayment to the provincial health insurer.

The court identified deficiencies in the settlement approval materials, including the absence of the retainer agreement, incomplete docket totals, and lack of evidence that fee increases had been approved by the litigation guardian.

Concerns were also raised regarding the proportion of legal fees relative to the minor’s recovery and duplication of work arising from earlier defective filings.

The court directed counsel to cure the deficiencies before the settlement could be completed.

Two insurers brought motions to dismiss third party claims arising from a motor vehicle accident involving a rented vehicle and an alleged unidentified driver.

The central issue was the priority of insurance coverage under the Insurance Act where claims were made under the uninsured and unidentified motorist provisions of an automobile policy.

The court held that s. 277(1.1), which alters priority rules for leased or rented vehicles, applies only to third party liability coverage and not to uninsured or unidentified motorist claims.

Such claims remain governed by s. 277(1), which provides that the owner's policy is first loss insurance.

Accordingly, the insurer of the rented vehicle was required to respond first and the third party claims against the other insurers were dismissed.