Knowledge Centre

FSCO Ruling on Mediation Deemed Failure After 60 Days Upheld

September 2012 Kelly Santini LLP, Ontario

At the end of July the Divisional Court upheld the decision of FSCO Director’s Delegate that mediation is considered to have failed if no resolution has been reached within 60 days. FSCO has not accepted that this is the last word on the matter and refuses to assign arbitrators to matters where no mediation has been conducted. FSCO has posted on its website that it is awaiting the release of the decision of the Ontario Court of Appeal who heard arguments on this matter in June. With mediations currently backlogged by over a year, insurers should anticipate an increase the number of statement of claims they receive for accident benefit cases as insured’s choose to sue instead of arbitrating accident benefit disputes. To read the Director’s Delegate ruling, please click here.

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