Ontario Civil


Civil Practice and Procedure

Actions involving parties under disability

Mental incompetents

Proposed settlement was approved by court

Court approval of settlement. Insured was elderly man who suffered significant head injury when struck by vehicle while walking across roadway. Insurers paid more than $1.3 million for statutory accident benefits (SABs). Insurers offered to settle insured’s SAB claim by payment of $180,000 for future attendant care, $180,000 for future medical and rehabilitation benefits, $10,000 for costs, and $3,000 for assessable disbursements. Insured’s solicitors would receive total of $53,680 from settlement amount. Insured, through his litigation guardian, applied for order approving proposed full and final settlement of his SAB claim. Application granted. Insured’s solicitors had obtained settlement that was in best interests of insured and that would adequately look after his needs. Resolution of SAB claim on full and final basis would bring end to claim and negate need to participate in dispute resolution process regarding any future denial of benefits requested. Proposed settlement represented fair and appropriate resolution of insured’s claims for SABs having regard to complete factual matrix of case. Proposed legal fees were fair and reasonable.

Kwok (Litigation guardian of) v. State Farm Mutual Automobile Insurance Co. (2016), 2016 CarswellOnt 19083, 2016 ONSC 7339, Firestone J. (Ont. S.C.J.).

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