Dear Mr. Maclaren
I am a resident in your riding and a lawyer who practices plaintiff side personal injury law and member of the Ontario Trial Lawyers Association. (OTLA)
The Ontario government has completely blindsided the profession today with their proposal to lower the prejudgment interest on general damages in MVA claims from 5% to the Courts of Justice Act rate (currently 1.3). They said the reason for the change is to “update” the rate applied and to “help reduce claims costs.”
This latest change was presented without notice or any consultation with the Ontario Trial Lawyers Association or other legal associations being consulted either.
We are greatly concerned that the Ministry of Finance and officials at FSCO have little understanding that the prejudgment interest rate provided incentive to settle cases in a timely manner. With the interest rate for pain and suffering damages in MVAs reduced from 5 % to 1.3% to link it to the prejudgment rate for other damages, there will obviously be little incentive for insurers to deal expeditiously with claims for pain and suffering. Instead, they will keep their money in the bank for as long as possible, make additional profits from their investments, and starve out innocent plaintiffs.
This development follows the December 2013 announcement to amend the attendant care provisions of the SABS, effective February 1, which was also made without any prior consultation or notice to OTLA or other industry stakeholders.
You should be aware that this change will HURT injured people and HELP insurance companies at the expense of vulnerable injured residents of your riding.
Also,
- This amendment is a gift to insurance companies at the expense of the innocent, injured accident victim.
- This change lets insurance companies delay justice to innocent accident victims in order to fuel further profits.
- If left uncorrected, it will only add to the considerable court case backlog since delayed resolution means more cases on the trial list, more pre trial conferences, more motions, etc.
- These amendments were made without any consultation with the legal profession, or any awareness of the impact that this will have on accident victims, access to justice, and the significant cost to the Court system.
- Once again, the government has further tipped the balance grossly in favour of the insurance industry which has already reaped in huge profits since the September 2010 policy change.
- The government must rework this punitive measure, consult with the legal profession and restore balance.
I hope you will raise this concern with the government as soon as possible. It is a disgraceful bowing to the Insurance lobby again!
Sincerely
Andrea Girones, BA, LL.B MBA
232 Ridgeside Farm drive (home)
Girones Lawyers- Ottawa
Medical Malpractice and Personal Injury Law
Suite 300, 300 Terry Fox Drive, Kanata, ON, K2K 0E3
