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ARTICLE · 02 JUNE 2014

The Importance Of Settlement Authority At A Pre-Hearing

Arbitrator Wilson’s decision in "Dabrowska and Aviva Canada" is a warning to Insurers attending Financial Services Commission of Ontario pre-hearings.

CanadaInsurance

Arbitrator Wilson's recent decision in Dabrowska and Aviva Canada [FSCO A13-007793] is a warning to Insurers attending Financial Services Commission of Ontario (FSCO) pre-hearings – always have authority!

In this case, the parties attended a pre-hearing and had arrived at a tentative settlement. Unfortunately, no one at Aviva was available to approve the settlement even though the parties waited "a significant time for anyone in authority to respond." As a result, the pre-hearing was adjourned.

While Arbitrator Wilson recognized a settlement was voluntary, he noted that the parties should attend a pre-hearing in a position to have a meaningful and fulsome discussion about the file. Further, the parties should be able to respond during the pre-hearing discussion to developments or information. Arbitrator Wilson concluded that in pre-hearings, time is of the essence and it is important that the parties to litigation be in a position to make decisions in real time.

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