Legal Blog

Arbitration

Koon v. Lawyers Professional Indemnity Co. 2016 Ont SCJ

A lawyer was sued for negligence. Its insurer, LawPro, attempted to have the lawyer consent to a settlement that LawPro decided would be fair the under the circumstances. The lawyer refused to do so and, in accordance with the errors and omissions policy, LawPro authorised the settlement regardless. As a result of the settlement, the lawyer was liable for a $5,000 deductible plus a surcharge of $2,500 per year for 5 years. Accordingly, the settlement cost the lawyer $17,500. The policy allowed the lawyer to submit her dispute with LawPro over the settlement, and whether it should have been made, to arbitration. After a number of adjournments brought on by the lawyer and the resignation of one arbitrator, the hearing was held, and the new arbitrator ruled against the lawyer. The lawyer appealed. The motions judge held that the arbitrator had properly exercised his discretion when considering whether to grant the lawyer yet another adjournment and he properly dealt with procedural issues in the arbitration hearing.

Written by Jonathan Speigel Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.