The appellant was injured in a motor vehicle accident and applied for accident benefits, which the insurer denied.
The appellant sought mediation, but failed to attend the scheduled mediation sessions after the parties agreed to extend the time for mediation.
The mediator issued a report of failed mediation, and the appellant subsequently applied for arbitration.
The Arbitrator dismissed the application as statute-barred, finding that mediation had not failed but simply did not take place due to the appellant's non-attendance.
On appeal, the Director's Delegate reversed the decision, holding that under section 280(7) of the Insurance Act, mediation fails when the agreed time for mediation expires without a settlement, regardless of the mediator's opinion or the parties' attendance.
The application for arbitration was therefore not statute-barred.