ICBC Law

Although this blog is focused almost exclusively on British Columbia legal issues relating to personal injury claims, I do like to keep my eye on other Canadian jurisdictions to stay appraised of significant legal developments.  One topic I particularly focus on is so called ‘tort-reform‘ which is generally code for efforts to change the law by limiting the right of compensation to those harmed through the carelessness of others.

As I recently posted, while Nova Scotia has recently taken steps to remove their long-standing artificial caps on pain and suffering awards for so called ‘minor injuries‘, Ontario seems to be moving in the opposite direction.

Today I came across this article from the Canadian Underwriter website which states that “Ontario’s insurance regulator, the Financial Services Commission of Ontario (FSCO), has posted its new Minor Injury Guideline (MIG), a key pillar of the province’s proposed new auto insurance reform package.”

Under the proposal people with ‘minor’ injuries are entitled to benefits “subject to a $3,500 limit“. The proposed definition of a “minor injury” according to the article is:

“a sprain, strain, whiplash associated disorder, contusion, abrasion, laceration or subluxation [a partial but not complete dislocation of the joint], and any clinically associated sequelae [symptoms following on these injuries].”

A whiplash-associated disorder is further described as a whiplash injury that “does not exhibit objective, demonstrable, definable and clinically relevant neurological signs and does not exhibit a fracture in or dislocation of the spine.”

Rarely is it wise public policy to limit the rights of those injured / affected by the actions of others as has now been demonstrated with the wisdom of hindsight with the public disdain at the $75 million oil liability cap which is drawing well deserved critisim south of the border.

Efforts to limit the rights of people to seek lawful compensation usually have one predictable result, and that is to deprive the most deserving people in the affected class of fair and meaningful restoration.  Hopefully this minor injury guideline will be reformed before it comes into force.

The Olympics are now over. British Columbians (and all Canadians for that matter) have much to be proud of. The Olympic Games have been a great success and created a sense of national unity and pride that have been unparellelled. As a Canadian I am proud of these games and the historic success of our athletes. Canadians will not soon forget where they were when Sidney Crosby scored his spectacular overtime goal to claim Olympic Gold.

With the dust settling, however, one story that has not gone away was the cloud that the Olympics started under with the unfortunate and tragic death of Georgia Luge Competitor Nodar Kumaritashvili.

When this news broke I shared my immediate thoughts on the tragedy.

Since authoring my article I’ve been approached by a handful of people to further share my views. I’ve been asked to comment on some of the specific shortcomings of British Columbia law that I alluded to in my initial article. After having this discussion several times I thought I would share some of my thoughts by way of this follow up post.

If a person dies through the carelessness of others in British Columbia the BC Family Compensation Act governs claims for compensation brought by survivors. This outdated law has been the subject of much criticism due to its restrictions for survivors rights. I could not have commented on the shortcomings of BC Wrongful Death law better than the TLABC (Trial Lawyers Association of British Columbia) who have just released their comprehensive views of the need for overhaul of BC Wrongful Death laws.  You can find these here and I strongly urge anyone interested in reform in this area to review TLABC’s submissions in full

Another shortcoming under BC Law is the quick notice limitation period contained in the BC Local Government Act.

Local Governments, are defined under the act as:

If you are injured and can bring a claim against a Local Government you will lose your right to make your claim unless you comply with s. 286 of the local government act which provides as follows:

Immunity Unless Notice Given To Municipality After Damage

(1) A municipality is in no case liable for damages unless notice in writing, setting out the time, place, and manner in which the damage has been sustaibed, is delivered to the municipality within 2 months from the date on which the damage was sustained.

(2)        In case of the death of a person injured, the failure to give notice required by this section is not a bar to the maintenance of the action.

(3)        Failure to give the notice or its insufficiency is not a bar to the maintenance of an action if the court before whom it is tried, or, in case of appeal, the Court of Appeal, believes

(a)        there was reasonable excuse, and

(b)        the defendant has not been prejudiced in its defence by the failure or insufficiency.

Assuming that Local Governments had some responsibility for the design/set up / access to the now world famous Whistler Sliding Centre this limitation period would be triggered for anyone advancing an injury claim against the Local Governments. While this legislation does have an exclusion for claims involving “death” this limitation period has operated to strip the rights of many seriously injured people following alleged negligence of Local Governments.

When people are forced to deal with the consequences of a tragedy it is very harsh to take away their right to seek lawful compensation if they fail to turn their mind to litigation within two months.

The above examples are some of the first which came to mind when asked to comment on the shortcomings of British Columbia Personal Injury Law. While I am generally very proud of the tort system we have in this Province it is important to point out areas where there is room and need for improvement.

British Columbia remains the least ‘tort-reformed” Province in Canada and as a result we can be proud that in most instances BC offers fair adjudication of claims for those injured at the hands of others.  Many other Canadian jurisdictions offer fewer protections with compensation restrictions such as ‘no-fault‘ laws or ‘soft-tissue injury caps‘ on damages.

If a British Columbia resident is injured in another Province can they sue in BC to be compensated for their injuries?  Reasons for judgement were released today considering this issue.

In today’s case (Dembroski v. Rhainds) the Plaintiff was involved in a car crash in Alberta in 2007.  The Plaintiff was a British Columbia resident and was in Alberta for a short while to do some work as a farrier.    The Plaintiff was injured and unable to perform her work.  She returned to BC shortly after the car crash.  She had the majority of her treatments in BC.

The Plaintiff eventually sued the alleged at fault motorist for compensation in British Columbia.  The Defendant brought a motion to dismiss the claim arguing that BC Courts lack jurisdiction to preside overthis case.

Mr. Justice Truscott agreed with the defendants and dismissed the lawsuit.  In doing so he made the following points regarding BC Courts’ jurisdiction to preside over a lawsuit arising from an out of Province motor vehicle accident:

11] The court’s jurisdiction is governed by the Court Jurisdiction and Proceedings Transfer Act, S.B.C. 2003, c. 28 (CJPTA), which gives the court territorial jurisdiction in particular circumstances.

[12] From the facts here, the only circumstance set out in the legislation that might give the court jurisdiction is the provision in s. 3(e) that “there is a real and substantial connection between British Columbia and the facts on which the proceeding against that person is based.”…

[19] Defence counsel cites a number of court decisions in British Columbia that have denied jurisdiction on what are alleged to be similar circumstances, including: Canadian International Marketing Distributing Ltd. v. Nitsuko Ltd. (1990), 56 B.C.L.R. (2d) 130 (C.A.); Aubichon (Guardian ad litem of) v. Kazakoff, [1998] B.C.J. No. 3058 (S.C.); Jordan v. Schatz, 2000 BCCA 409; Sequin-Chand v. McAllister, [1992] B.C.J. No. 237 (S.C.); Williams v. TST Porter (c.o.b. 6422217 Canada Inc.), 2008 BCSC 1315; and Roed v. Scheffler, 2009 BCSC 731.

[20] All of these cases concluded that where a British Columbia resident plaintiff is injured in a foreign jurisdiction and then returns to British Columbia for treatment of injuries, there exists no real and substantial connection with British Columbia to give the courts of British Columbia jurisdiction because the only connection to this province is the fact that the plaintiff is a resident here at the time of the claim.

[21] In Jordan v. Schatz, Mr. Justice Cumming, writing the decision for the Court, said at para. 23:

What constitutes a “real and substantial connection” has not been fully defined. However, it has been well established by this Court in Nitsuko, supra, and in Ell, supra, that there is no real and substantial connection to British Columbia based on the bare residency of the Plaintiff in the jurisdiction. There must be some other or further sufficient connecting factor or “contacts” to this province. Clear examples of connecting factors include the residency of the defendant in the jurisdiction or the fact that the tortious act was committed or damages suffered here.

…

36] I can see no exception that would be applicable in this case to allow me to depart from the decisions in those cases that have denied jurisdiction to the court when the plaintiff’s only connection to the jurisdiction is the fact she continues to suffer from her injuries while she resides here. To accept jurisdiction here would be to accept jurisdiction for a plaintiff who moves to the jurisdiction after an accident in another province and continues to suffer from injuries here. That cannot be.

[37] There is no real and substantial connection between British Columbia and the facts on which the proceeding against the defendants is based. There may be a real and substantial connection between British Columbia and the plaintiff, but that does not satisfy the words of s. 3.

[38] The action is dismissed for want of jurisdiction. The defendants will have their costs.

Tort reform generally refers to limiting the rights of those injured through the carelessness of others to the beneift of insurance company profits.  To this end Alberta and Nova Scotia enacted laws over the last several years artificially capping the compensation certain injured people can claim for non-pecuniniary damages (money for pain and suffering and loss of enjoyment of life).

These laws have been the subject of various court challenges and in 2009 the Alberta Court of Appeal found that Province’s Soft Tissue Injury Cap was constitutional and around the same time Nova Scotia’s Court of Appeal concluded that their ‘minor injury claims’ cap was also valid.

It’s against this background that I read a surprisingly refreshing headline today at The Lawyers Weekly.   The Nova Scotia government is considering abolishing their “minor injury cap” which limits non-pecuniary damages in that Province for certain injuries to $2,500.    One of the problems with the law is that many serious injuries such as broken bones and chronic soft tissue injuries could be considred ‘minor’ given the wording of the law.

The Lawyers Weekly reports that the Premier of Nova Scotia claims that the cap ‘is preventing people who have been seriously injured from pursuing compensation and will not survive in its present form‘.  I could not have summarized the unfairness of these laws better than the Premier himself did when he stated that “Insurance is a product designed to protect people.  If you exclude people from protection…then by definition you’re not delivering the product that has been paid for“.

Nova Scotia is apparently seeking public input on the best way to revise this 6 year old law.  The insurers who proffited under this law will likely rally against this change.  For this reason those interested in seeing this law overturned and having the rights of those injured throught he fault of others restored should make sure their voices are heard.  You can voice your support for this positive change by contacting the Government at the following address:

The Office of the Superintendent of Insurance
PO Box 2271
4th Floor
Provincial Finance Building
1723 Hollis Street
Halifax, NS B3J 3C8

You can click here to read the full story at The Lawyers Weekly.

Today I was interviewed by Charles Adler of Corus Radio on the topic of frivolous lawsuits.

The interview aired nationally.  You can click on the following link ( adler-and-erik-audio-clip ) to listen to my portion of the interview.

I’d like to credit CJOB 68 Winnipeg / Corus Radio Network for providing me with a copy of the clip.

As an injury claims lawyer there are several political-legal issues that I like to keep my eye on. Issues such as legal aid funding, tort reform efforts (code for limiting the rights of victims injured through the careless actions of others) and access to justice are all of interest to me.

With a  Provincial Election just around the corner where do BC’s 2 main political parties stand on these important issues?

Thanks to the efforts of the Trial Lawyers Association of British Columbia (the “TLABC”), we now have some much needed insight.

The Trial Lawyers Association of BC posed the following 14 questions to the NDP, and the BC Liberal Party:

1.  If Elected, will you oppose the BCJRTF proposal for active case management?

2.  If Elected, will you oppose the BCJRTF proposal for curtailing discovery rights?

3.  If elected, will you oppose efforts to introduce no-fault automobile insurance in BC?

4.  If elected, will you support a change in legislation to allow damages for mental anguish and other intangible losses suffered by family members of people who are killed by the careless, reckless or illegal acts of others?

5.  If elected, will you oppose any effort to further restrict the ability of injured patients to recover damages in court for medical malpractice?

6.  If elected, will you support legislation that requires the court to consider an award of punitive damages where conduct of the defendant is found to be outrageous or unusually reckless?

7.  If elected, will you work to protect and enhance the tort system as a means of deterring unsafe conduct  and holding wrongdoers accountable for the injuries they cause?

8.  If elected, will you support a return to the previous law, which permitted accident victims to recover their gross earnings?

9.  If elected will you support a return to rights being debated in the legislature rather than being changed through regulations and therefor altered by ICBC and the provincial cabinet without open debate?

10.  If elected, will you support a return to payment of interest on non-economic damages?

11.  If elected,  will you support renewal of the legal aid system by providing legal aid to those who need it, and ensuring that those who represent them are adequately compensated for this work?

12.  If elected, will you support reinstating a legal aid system which funds family law legal services at least to pre 2000 levels, such that eligibility requirements are sufficient to meet the needs of the diverse communities of BC, and the funding is sufficient for counsel to attend to these cases in a manner that meets their practice standards while also permitting access to justice for those marginalized in society?

13.  If elected, will you support the revisions to the proposed family rules to address these concerns?

14.  If elected, will you support increasing the funding to provincial correction services to improve the quality of programs within those facilities?

Here are the Parties answers:

BC LIBERALS

1.  The BC Liberal government, in conjunction with the judiciary and senior members of the bar, convened the British Columbia Justice Reform Task Force to identify a wide range of ideas and initiatives to make the justice system more responsive, accessible and cost-effective.  Experience in other jurisdictions, including the United Kingdom and Ontario, demonstrate that case management conferences reduce delays, increase predictability, reduce overall costs and lower court administration costs. The Task Force has learned from the experience of jurisdictions and has incorporated those lessons into the proposed changes. 

2.  The British Columbia Justice Reform Task Force has reviewed the experience of jurisdictions that have limited discovery and concluded there is no evidence that it has created unfairness, and studies have concluded that excessive document production and oral discovery are responsible for much of the delay and expense in civil litigation. The proposed rules strike a balance between the right of discovery and efficiency. Litigants must disclose all documents referred to in their pleadings, all documents they intend to refer to at trial and all documents that could be used to prove or disprove a material fact in the case. It is open to parties to apply to extend this scope of discovery in any case where a wider scope would be warranted.   

3.  A BC Liberal government has no intention of moving to a system of no-fault insurance in British Columbia, or of introducing caps, deductibles or thresholds      

4.  British Columbia’s Family Compensation Act governs the compensation for wrongful death cases involving family members. The BC Liberal government initiated a review of the entire Act, which is examining issues such as compensation for non-economic losses including pain and suffering and bereavement. Victims groups and other advocacy groups have offered valuable input during the consultation phase.   

5.  This issue relates to detailed aspects of the current system of personal injury compensation in British Columbia, which is a mixture of common law and statute law. We think it is important to engage law reform agencies, the legal profession and other affected groups in a careful consideration of these issues. Through its input, the Trial Lawyers Association of British Columbia can help preserve and protect the basic principles of the tort system.     

6.  See above     

7.  The BC Liberals support our civil law system as both a system of compensation and deterrence. We also believe that the court system must be more accessible, accountable and affordable so that justice is available for all British Columbians. That is why the BC Liberal government invested $12 million over three years to reform the civil, family and criminal justice systems.   

8.  This issue relates to detailed aspects of the current system of personal injury compensation in British Columbia, which is a mixture of common law and statute law. We think it is important to engage law reform agencies, the legal profession and other affected groups in a careful consideration of these issues. Through its input, the Trial Lawyers Association of British Columbia can help preserve and protect the basic principles of the tort system.    

9.  Changes to the Insurance (Motor Vehicle) Act must be debated in the legislature. Regulatory changes must be approved by Cabinet. The BC Liberals have no plans to alter this long-standing division of responsibilities.    

10.  This issue relates to detailed aspects of the current system of personal injury compensation in British Columbia, which is a mixture of common law and statute law. We think it is important to engage law reform agencies, the legal profession and other affected groups in a careful consideration of these issues. Through its input, the Trial Lawyers Association of British Columbia can help preserve and protect the basic principles of the tort system.    

It is our view that injured plaintiffs should not have their compensation reduced by the effect of delay in payment. Whether the appropriate tool to achieve this objective is by payment of interest, by including the “time value of money” in the calculation of awards for non-pecuniary damages, or by some other means is a question that requires further consideration.      

11.  The BC Liberal government funds one of the most generous legal aid programs in Canada. Legal aid now provides full coverage for family matters involving domestic violence or child protection hearings and expanded legal information and education services. Legal aid has traditionally provided legal representation, paying private lawyers to fight each other in court. That is not what people need to effectively resolve disputes. Access to justice for disadvantaged people requires a continuum of services, including provision of information, support and advice, getting help through alternative dispute resolution and, in some cases, full legal representation.  

The BC Liberal government has implemented a more regionally-based structure with less administration; built up support programs like a 24-hour province-wide legal aid call centre; and provided more economical alternatives to court, like mediation, to focus legal aid dollars where they are needed most - delivering essential services. The new legal aid model reduces administrative costs and puts more money into direct services.    

12.  The BC Liberal government recently increased legal aid funding by $4.6 million. The money will provide family legal services for low-income families in crisis. The BC Liberals will continue to design efficient and responsive programs that make the justice system simpler and more affordable.   

In 2008/09 the BC Liberal government spent $29.9 million on access to justice services beyond the funding we provide to the legal aid program and includes services in addition to mediation and dispute resolution. The BC Liberal government took steps to ensure that legal representation for family disputes is available to eligible clients in emergency situations, including clients in financial need where the Province is seeking custody of a child.    

13.  The new vision of family justice embodied in the proposed rule changes builds on extensive efforts over the last several years to move the family justice system away from an adversarial process. The goal is a process focused on values of family autonomy, co-operation and the best interests of the child.   

The BC Liberal government introduced a notice to mediate process in November 2007 to help facilitate out of court resolution. An expanded Justice Access Centre pilot project was opened in Nanaimo, which offers services and supports with family justice issues. The BC Liberals want to make family disputes easier to resolve and more affordable through new rules of procedure.   

14.  The BC Liberals support programs within the provincial corrections systems that are targeted at reducing recidivism. The BC Liberal government supports programs designed to help offenders confront and deal with issues underlying their behaviors such as substance abuse, violence prevention and respectful relationships. In partnership with Justice Canada, the BC Liberal government supported the enhancement of Aboriginal programming in correctional centres and communities. Programs assisting inmates to upgrade their education and develop life skills are also offered.

The NDP:  

1 – Yes, we will oppose the BCJRTF proposal for active case management.   

2 – Yes, we will oppose the BCJRTF proposal for curtailing discovery rights.   

3 – Yes, we will oppose efforts to introduce no-fault automobile insurance in BC.   

4 – We believe that this issue needs consultation and further study.   

5 – Yes, we will oppose any effort to further restrict the ability of injured patients to recover damages in court for medical malpractice.   

6 – Yes, we will support legislation that requires the court to consider an award of punitive damages where conduct of the defendant is found to be outrageous or unusually reckless.   

7 – Yes, we will work to protect and enhance the tort system as a means of deterring unsafe conduct and holding wrongdoers accountable for the injuries they cause.   

8 – We believe that this issue needs consultation and further study.   

9 – Yes, we will support a return to rights being debated in the legislature rather than being changed through regulations and therefore altered by ICBC and the provincial cabinet without debate.   

10 – We believe that this issue needs consultation and further study.   

11 and 12:   

We are very concerned about the current state of legal aid in BC, particularly with respect to family law. We will work towards reinstating resources for legal aid services, starting with additional funding of $10 million annually for 2010/11 and 2011/12. As resources permit we will do more to fix B.C.’s legal aid system to ensure access for those who need it.   

13 – Yes, we will support revisions to the proposed family rules to address these concerns.  

14 – Yes, we will support increasing the funding to provincial correction services to improve the quality of programs within those facilities. 

On February 8, 2008, Associate Chief Justice Neil Wittmann concluded that the Alberta Minor Injury Regulation (a regulation which imposed a $4,000 cap on auto-accident victims who sustained soft tissue injuries) is unconstitutional.

Justice Wittmann concluded that the cap on damages for soft tissue injuries”sacrifices the dignity of Minor Injury victims at the altar of reducing insurance premiums.”

In striking down the legislation Justice Wittmann held that the Minor Injury Regulation is discriminatory against victims who sustained soft tissue injuries and that this violated Section 15 of the Canadian Charter of Rights and Freedoms.

This is a great decision as it restores the rights of victims of Alberta auto accidents who sustained soft tissue injuries to seek fair compensation for their losses from the courts. The decison has been hailed a success by the Alberta Civil Trial Lawyers Association who have urged the government to accept the decision.

The government, however, has announced that they will indeed appeal the decision. Justice Wittmann’s reasoning appears sound and hopefully will withstand appeal. However, nothing in the judgement prevents Alberta’s legislature from introducting new legislation which would limit the compensation available for pain and suffering for auto accident victims.

Only time will tell whether Alberta’s legislature will institute revised legislation capping damages for ‘minor injuries’ in a way that is not inconsistent with Justice Wittman’s interpretation of Section 15 of the Charter or if the government will allow Alberta auto accident victims with soft tissue injuries to have unfettered access to the courts for fair compensation. In the meantime, however, many plaintiff’s may now have access to the courts to receive fair compensation for their soft tissue injuries.