Economical Mutual Insurance Company v. Great West Casualty Company, 2010 ONSC 7208

Economical Mutual Insurance Company was successful in an appeal under the Arbitration Act, 1991, to set aside the decision of The Honourable Robert Montgomery, the arbitrator who was retained to hear a dispute between Economical Mutual Insurance Company and Great West Casualty Company. This case involved remarkable procedural and evidentiary hurdles including several examinations de bene esse, expert evidence involving computer modeling and accident reconstructions, and special arrangements for a witness who was not permitted to enter Canada.

Madam Justice Roberts agreed with the appellant's submission that the reasons of the arbitrator were so inadequate as to foreclose proper appellate review, amounting to a reversible error of law. The Court found that where an arbitrator's findings of credibility are central to the disposition of the matter, as was the case here, it was incumbent on the arbitrator to carefully analyze the competing evidence.

The decision was set aside and the parties were referred back to arbitration before a new arbitrator. The matter has now been resolved by way of settlement that was favourable to our client.

Jeffrey Kaufman and Richard Butler were counsel to Economical Mutual Insurance Company in these proceedings.