Following a jury trial in a negligence action arising from a rear-end collision with a motorcycle, the plaintiff obtained a damages award of $248,000.
The plaintiff subsequently sought costs including augmented costs under the Insurance Act due to the defendant insurer’s failure to make reasonable settlement efforts and to meaningfully participate in mediation.
The court found the insurer’s participation in mediation was a sham and concluded that it failed to comply with its statutory obligations under ss. 258.5 and 258.6 of the Insurance Act.
As a result, the court awarded partial indemnity costs up to the plaintiff’s settlement offer date and substantial indemnity thereafter, and augmented the costs due to the refusal to mediate.
The total costs award was $217,000 plus HST, in addition to pre-judgment interest.
