MLB-Slaw Selected Case Summaries

Here you'll find weekly summaries of selected cases provided to Slaw by Maritime Law Book's National Reporter System.

May 9

Federation Insurance Co. of Canada v. Markel Insurance Co. of Canada 2012 ONCA 218

Insurance - Automobile insurance - Compulsory government schemes - Subrogation or indemnity - Arbitration (incl. limitation period)

At issue in these appeals was when the limitation period began to run for a “loss transfer claim” made by one insurer against another for indemnification for statutory accident benefits paid to an insured. Loss transfer claims, brought pursuant to s. 275 of the Insurance Act were fault-based claims available as between insurers for different classes of vehicles as defined by regulation. In Federation Insurance Co. of Canada v. Kingsway General Insurance Co., the arbitrator held that the limitation period began to run the day after the insurer seeking indemnification made a demand for loss transfer. In Markel Insurance Co. of Canada v. ING Insurance Co. of Canada, the arbitrator found that the limitation period ran only from the date the second insurer definitively refused to indemnify. Federation and Markel appealed the arbitral decisions.

The Ontario Superior Court, in a decision reported at [2011] O.T.C. Uned. 6496, upheld the approach of the arbitrator in Federation v. Kingsway and rejected that of the arbitrator in Markel v. ING. Federation and ING appealed.

The Ontario Court of Appeal dismissed the appeals.

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