Proposed Class Actions Against Insurers Fails

Court of Appeal confirms LAT to decide SABs Disputes

In a previous article, BLG wrote about proposed class actions brought against 15 auto insurers and the insurers' government regulator, the Financial Services Commission of Ontario (FSCO, now the Financial Services Regulatory Agency of Ontario), alleging the insurers were improperly deducting HST from the plaintiff's statutory accident benefits (SABs). The defendants subsequently brought a Rule 21 motion, which resulted in the Superior Court of Justice dismissing the claims against the insurers, holding that it lacked jurisdiction over the claims, which belonged to the License Appeal Tribunal (LAT). However, the claim against FSCO was allowed to proceed as the nature of the allegations fell outside the jurisdiction of the LAT.