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Commercial Arbitration

Litigation, Blog

Written by Kent Burnham, Partner
Many Contracts have a clause that says that disputes shall be resolved by arbitration and then make reference to the British Columbia Commercial Arbitration Act.  If this clause exists, or if the parties agree, the parties are able to have their dispute resolved by way of arbitration without the necessity of going through the entire Court process.
Arbitration is, essentially, a private judicial process whereby disputes are resolved by an appointed Arbitrator instead of a Judge.  The Arbitrator’s decision is in accordance with established law.
In its simplest description, arbitration is effectively hiring a private judge to hear the dispute and make a binding decision.  It can be much more complex than that as the parties can agree on the extent to which the Rules of Court apply, how much or how little evidence will be given by way of written statements, oral evidence, the extent of cross-examination, or even how rigidly the Rules of Evidence will apply.  The parties can incorporate other rules or values upon which they agree or by which their business, trade, or profession is governed.  The Arbitrator assists the parties in agreeing to the parameters by which they will resolve their dispute.  Once they are agreed upon, the process is very similar to the usual Court process with the parties presenting their cases, being submitted to cross-examination or some other test of the evidence, each party having an opportunity to present their argument, and then the decision being rendered by the Arbitrator.
Arbitral awards can be subject to appeal, or the parties can agree to have the one decision be final.
If there is improper conduct on the part of the Arbitrator, it is always reviewable by the Courts and, as a general rule the Courts have the jurisdiction to review decisions where there has been an error in law.
Arbitration is not inexpensive.  It is, however, more accessible to the parties and can be structured in such a manner as to proceed more quickly than matters would through the Courts.  It allows for the parties to select a decision maker (the “Arbitrator”) or a panel of decision makers (the “Tribunal”) in whom they have confidence and who have special knowledge of the kind of claim being arbitrated.
With the increasing costs of litigation and the inaccessibility of the Courts due to overbooking and too few judges, arbitration is an option that should be considered to resolve commercial disputes.  It permits a flexibility unknown to the Court and allows  resolutions to be fashioned in a matter that best serves the parties’ interests.  Properly prepared and organized, the Rules of Court and Rules of Evidence can be utilized to their best advantage and a decision maker selected that provides consistency and predictability.
If you are involved in a legal dispute, consider and discuss the possibility of resolving it through arbitration with your lawyer.

May 8, 2017
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Judgement Exceeds ICBC Valuation

Personal Injury, Decisions and Settlements

HARRIS vs. KRAUS
Ms. Harris was involved in a significant motor vehicle accident on May 27, 2012.  At the time, she was a young mother of two and was doing her best to help provide for her family while caring for her young children.  Unfortunately, the accident caused Ms. Harris to develop chronic pain into her neck, right shoulder, back and hips.  The chronic pain caused her great difficulty in managing her home life and her job.  She went from being a vibrant and energetic person to someone who was just barely getting by and surviving. 

Ms. Harris retained James Cotter and Allyson Edwards to advance her claim for injuries against ICBC.  Due to the soft tissue nature of her injuries, ICBC treated her complaints of chronic pain with suspicion.  Ms. Harris was the subject of surveillance and her neighborhood was canvassed by investigators seeking information about her daily and domestic activities.  This caused Ms. Harris incredible stress and embarrassment.  Neighbors that she did not even know were told that she was bringing a claim for injuries against ICBC and were asked whether they saw her doing physical activities in her yard or outside of her home.  These attempts to discredit Ms. Harris did not succeed because she was an honest and credible individual. She was forthright with respect to what she was able to do and how the injuries affected her. 

Despite her injuries, Ms. Harris was able to re-train and she obtained a job that she enjoyed.  Unfortunately, the nature of her injuries made it difficult for her to take advantage of overtime opportunities and to pursue advancement.  She had an accommodating employer but she was concerned that if her employment circumstances were to change, she might find herself unemployed.  She was fearful that if she had to find a new job,  no employer would want her due to her chronic pain and back issues. 

James Cotter and Allyson Edwards took this claim to a trial on January 23, 2017 for five days.  Mr. Justice Betton rendered a decision whereby he found Ms. Harris to be a credible person, and awarded her damages for pain and suffering, past wage loss, future cost of care, and future earning capacity loss.  These awards were made in order to replace what Ms. Harris had lost.  The total amount of the judgement was $292,536.96.  This amount was far greater than ICBC’s valuation of the claim prior to trial.

Click here to read the full court decision.

April 20, 2017
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Rear End Collision Resolves for $150,000.00 plus…

Personal Injury, Decisions and Settlements

Michael Yawney QC was retained by a woman from Salmon Arm BC who was hit hard from behind on Highway 97 while stopped due to a left turning vehicle infront of her. She suffered soft tissue injuries that required extensive physiotherapy and rehabilitation. Michael was able to resolve her claim prior to trial for $150,000.00 plus costs and disbursements.

March 31, 2017
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Employers Beware: Is it an Employee or a Contractor?

Employment Law, Blog

Written by Andrew Powell, Partner

In many businesses, the owners attempt to avoid employee issues altogether by just not using them.  They say, “I don’t have any employees.  I use contractors.”   To which, as lawyers, we generally say “are you sure”?  because quite often, perhaps even usually, they are wrong.  Hence, one major area of surprise liability for an employer is when they wrongly identify an employee as an independent contractor.
There are many reasons that an employer might want to use independent contractors instead of employees.  For one thing, the Employment Standards Act doesn’t apply to contractors, so you can be freer with work hours and overtime and holiday pay.  There are also tax reasons on both the part of the employer and the worker that make a contractor-type relationship more attractive: as an employer, you are responsible for withholding taxes and remitting them, and also for making payroll deductions – but if you use only independent contractors, you can pass that responsibility on to the worker by having them simply submit an invoice and pay them like they are an independent business.  The employer doesn’t have the administration headache, and the worker can get all sorts of benefits too, such as the ability to write expenses off against their “business” income.
But beware!  There are enormous issues with this structure, and you have to be extremely careful.
First: the Canada Revenue Agency is very skeptical by nature.  Your business will likely be subject to audit from time to time, and contractor status is an issue where the CRA likes to shine a very bright light.  You can insist up and down that your worker is a contractor, but it won’t matter.  If it is determined that the worker is an employee and not a contractor, then all the remittances that were not made will suddenly need to be made, and not by the employee, but by the company.  The liability for this is very real, and can be quite significant.

Next: provincially, the Employment Standards Branch is also very skeptical.  A contractor may well change his mind about his status, especially if his contract ends.  If for some reason, whatever reason, the worker decides that they want to take advantage of some provision of the Employment Standards Act, then that worker can file a complaint with the ESB.  If the ESB determines that the contractor is in fact an employee, then the Act and all its regulations will apply, and you can be subject to penalties and orders for violating hours of work or overtime or any other of a number of things, all in one sudden retroactive flash.   You may also be responsible for providing back pay – to someone you thought was an independent contractor.

Third: Courts are very skeptical. If the relationship ends (and eventually, for some reason, it will) the Courts will look at a contractor status and see right through it like it was a piece of stretched plastic wrap .  It is such a standard question that the Courts may not even bother going through a detailed analysis: they can just say, “dependent contractor”, and your company can be liable for employee rights, including severance or notice periods at common law.

So, at the end of the day, if you are going to have “contractors”, make sure they are actually independent contractors.  There are well established indicators for spotting true independent contractors:

              – Do they own their own tools?
              – Do they control their own schedule?
              – Can they hire or fire someone to help them do their work?
              – Do they have a chance of profit or a risk of loss?
              – Can they, and do they, work for other businesses?
             – And, basically, if you sniff this relationship, does the worker smell like an employee or a contractor?

Look at it like an outsider and decide.  If you are using a contractor status as a favour to an employee, then on behalf of your Company, think again.  The administrative savings to your business are likely not worth the risk.  If someone works for you, and only you, then you are better off to just call the relationship what it is: employment. 

March 31, 2017
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Nearly $350,000 Awarded, Far in Excess of ICBC Offer

Personal Injury, Decisions and Settlements


LAFOND vs. MANDAIR
Larry Lafond retained James Cotter after he was injured in a motor vehicle accident which left him with chronic neck pain and low back pain.  Despite these injuries he did not miss a lot of his work, due to the fact that he had a very accommodating employer.  His employer allowed him to do tasks which were much easier on his body, and to use his sick bank to make up lost wages.  These injuries, however, greatly impacted Mr. Lafond’s life such that his recreational activities were greatly limited, and his ability to enjoy life outside of work was greatly diminished.  Mr. Lafond was in his early 50’s, and was very worried as to how these injuries would impact him in the future.  He was concerned that he was not going to be able to continue with his job either because he could not continue due to his chronic pain, or his employer would sell the business and he would have to deal with a less accommodating new employer.

Unfortunately, ICBC did not believe that his injuries were as significant as both Mr. Lafond and his doctors said.  ICBC retained a specialist doctor whom they use quite often, who gave an opinion that Mr. Lafond had pre-existing back pain even though there was no evidence of any back complaints in the 5 years prior to the accident.  Unfortunately, ICBC would not offer enough money to reasonably settle this matter, as in our assessment the offers from ICBC were far below what Mr. Lafond would get at Trial. 

James Cotter and Leah Volkers took this claim to Trial, it lasted 6 days.  The Trial Judge fully believed Mr. Lafond and the impact of the injuries on his life.  The Trial Judge completely dismissed the ICBC specialist’s opinion.  The Judge awarded Mr. Lafond nearly $350,000 plus reimbursement of his litigation expenses.  This amount was far in excess of what ICBC was offering to try and resolve the matter.  At the end of the day, the Trial Judge made an award which was fair and reasonable in the circumstances, and it fulfilled the purpose of our legal system, which is to put the accident victim back in a position he would have been, had the accident not occurred.

Click here to read the full Court Decision.

March 30, 2017
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Claim Settled Prior to Trial

Personal Injury, Decisions and Settlements

Senior Litigation Partner Michael Yawney QC was retained by a young woman in her early twenties who was struck as a pedestrian while walking home from work in Vancouver. She was also involved in a rear end collision accident subsequent to that. She suffered physical and psychological injuries as a result of the accidents, including the loss of her spleen, chronic headaches and pervasive anxiety.  Her claims were settled a few weeks before the scheduled trial date for over $750,000.00. The accidents and injuries impacted her ability to work and her future prospects.

March 20, 2017
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Liability Denied in Alberta Accident and Resolves for $490,000.00

Personal Injury, Decisions and Settlements

An Alberta man was referred to Michael Yawney QC after he was injured in an accident on Hwy #1 west of Glacier Park Lodge. He was a passenger in an Alberta vehicle that was hit by another Alberta vehicle. Although liability was denied, Mr. Yawney was able to resolve the client’s claim at mediation a month prior to trial for $490,000.00.

December 22, 2016
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Understanding Estate Litigation

Wills and Estates, Blog

Written by Andrew Powell, Partner

There isn’t really a definition of estate litigation – mostly, it is just litigation that involves estates.  Almost any kind of litigation can involve an estate.  Estate representatives are allowed to start or defend actions that a deceased could have started or defended.  On the other hand, sometimes the estate isn’t involved in the dispute at all: the dispute is over the estate.  It is a misnomer to say an estate itself is involved in litigation – an estate is not itself a legal entity.  An estate is just a collection of stuff – money, land and personal property – that once belonged to a Deceased person.
Very broadly, estate litigation can be slotted into five broad categories.

1. The Will is Invalid
Chances are strong that if there is a will, it is a valid one.  The deceased had to go to a lawyer or notary who would assess their capacity, and take instructions, and then have it signed and witnessed.  In particular cases, however, there may be a serious question as to whether a will is valid.

The action to have a will declared valid is called proving the will “in solemn form”.  The action proceeds like a normal Supreme Court action and the evidence has to call into question, for instance, the capacity of the person, or whether there was undue influence, or whether the will is otherwise legally problematic. 

Also, there may be a question of whether the will comprises a violation of an agreement made between the deceased and another person, usually another deceased person.  If, for instance, the deceased person had made mirror wills with a spouse, and there was a term that the wills were irrevocable and expressed the joint desires of both parties, then they create a testamentary contract so if one spouse dies, the surviving spouse is no longer free to dispose of all of her property as she sees fit.  Any will that is drawn up after that would be invalid, because the property wasn’t hers to give away except as per the terms of the original will.

If a will is invalid, then the estate may be distributed based on a previous will, or the estate may go by way of intestacy.

2. The will is unfair
This is probably the most common type of actual estate litigation, and it occurs when a spouse or child feels that they have not been remembered appropriately by the Deceased.  Taking an example from folklore, assume that a miller had two sons.  In his will, he left his mill to his first son and to his second son he left only his cat.  All other things being equal, the second son would very likely have a strong claim that he was treated unjustly, and would have a case to vary his father’s will.  (Of course, in that story, as it turned out, the cat was far more valuable than the mill.)

There is a statutory cause of action under the terms of the Wills, Estates and Succession Act (or “WESA”).  WESA provides that a spouse or child of a deceased person can, even where a will is valid, challenge it because it violates a legal or moral duty owed to that spouse or child.

3. The will is irrelevant or non-existent
Not all property devolves by will.  Sometimes people go to great lengths to avoid having property pass within their estate by creating trusts or jointures.  Litigation can frequently arise when you have someone who would have been a beneficiary discover that property or accounts owned by the Deceased were put jointly into the names of the Deceased and some other sibling years previously.  That potential beneficiary may well complain that the joint interests created were not an honest-to-goodness transfer of title, but were only a transfer of the legal interest, and the now-hated sibling actually holds the property or account in trust for the estate.

This is often a two-prong problem – anyone who transfers property in this way may also have disinherited the unfortunate plaintiff.  So the plaintiff would have to bring a trust claim and a wills variation claim at the same time.

4. The will is incomplete or imperfect
A major problem with estate litigation is that the one person who would be the perfect witness to explain or interpret the will is no longer available to testify.   But what if the solicitor drawing the will misunderstood instructions?  What if something was left out?  What if the testator changed his mind but that change of mind isn’t reflected in the will?
WESA introduced a new chapter in the ability of Courts to tweak imperfect wills.  That act has provisions which govern the correction (or “rectification”) of wills, and also recognizes other documents, videos, emails, letters, or notes on napkins as testamentary documents that can become part of a will.  Also, the WESA provides litigants the ability to bring the solicitor’s file into evidence, open it up and see if the will truly reflects the instructions of the testator.

5. Other
There seems to be no end of ways that people can get into fights when an estate is in the balance (and usually paying the bills).  Other common ones are cases where one party claims that another is not fit to be an executor, or where a party appears and claims to be the spouse of the Deceased, much to the surprise of other parties.  Disputes can develop over ill-defined beneficiaries or where beneficiaries cannot be located, over property whose value changes in different circumstances, over mistakes made in the management of an estate, and more.  Estate litigation is a complex and growing area where both emotions and stakes can run high.

December 7, 2016
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Mistrial, ICBC Abuse of Process

Personal Injury, Decisions and Settlements
GLOVER v. LEAKEY

Senior Litigation partner Michael Yawney and associate Ryan Irving recently obtained an interesting decision in a case called Glover v. Leakey.  In that case, the Defendant was involved in a crash and injured two passengers.  One sued and fault was specifically admitted; only quantum was then in issue and that issue was settlement.  The second passenger was our client, Ms. Glover, she also sued,  but fault for the accident was specifically denied. Both claims were defended by ICBC.
In the midst of a two week jury trial Mr. Yawney and Mr. Irving  discovered the inconsistent pleadings and brought an application claiming that this was unfair and amounted to an abuse of process, asking for a directed judgment on liability.  The application was heard and the decision on abuse of process deferred, by agreement with counsel and the judge. This apparently was misunderstood by defence counsel. Due to the apparent misunderstanding the matter proceeded to verdict on liability and the jury found the Defendant was not negligent.  Before the order was entered the Court considered the matter and found that the liability denial was an abuse of process,  set aside the jury verdict and granted judgment on liability in favour of the plaintiff.  In reaching this result Madam Justice Gropper provided the following reasons:

  • [67] In considering my analysis of this application, I must note that the Insurance Corporation of British Columbia (ICBC), the Province’s public mandatory motor vehicle insurer had conduct of both the Glover and the Yeomans actions. The evidence provided is sparse, but it is clear that the adjuster in the Yeomans Action determined that liability would be admitted on behalf of Mr. Leakey whereas the adjuster in the Glover action determined that liability would be denied. I expressly find that ICBC knew of the inconsistent pleadings and that the insured, Kenneth Leakey knew or ought to have known of the inconsistent positions.
  • [68] Courts retain jurisdiction to dismiss actions that are an abuse of process where the principles such as judicial economy, consistency, finality and the integrity of the administration of justice will be violated. This doctrine is flexible and the categories of abuse of process are open. In my view, the defendant’s inconsistent positions on liability offend all these principles which are fundamental to our system of law.
  • [69] Before this action was filed the defendant admitted liability for the subject accident in the Yeomans Action. He obtained the benefit of settlement with that defendant. It cannot be open to him to re-litigate something that he already conceded in the Yeomans Action. That offends the principle of judicial economy, unnecessarily expending the resources of the justice system and in this particular instance it is more egregious as the case called upon the wisdom of the community in the form of jurors. It is also contrary to the principle of finality to permit something that has been admitted to be re-litigated.
  • [70] Consistency is also compromised. A position that Mr. Leakey is on one hand negligent but on the other not negligent cannot be anything but irreconcilable and inconsistent. The only distinction in the pleadings is that in the Yeomans Action the defendant asserted that Ms. Yeomans failed to properly adjust and securely fasten her seatbelt. That does not alter the bare fact of the defendant’s negligence.

  • [93] The defendant claims that to find these pleadings as inconsistent and an abuse of process will discourage admissions, contrary to public policy. I find that there is much larger public policy at stake. It is an abuse of process to allow a defendant to admit liability in respect of one passenger and deny liability in respect of the other where there are no facts to distinguish the two. Requiring a party, even ICBC, to file consistent pleadings is not onerous and, with respect, is a principled way to proceed. The pleading of inconsistent positions in this case cannot be condoned.

  • [94]        I have declared a mistrial in this case. It may appear that my decision on the abuse of process application is moot. It is not for three reasons:

1. A declaration of mistrial means that the matter will proceed to a new trial.
2. I grant judgment on the liability issue in favour of the plaintiff.
3. The plaintiff seeks special costs related to the abuse of process and has asked for leave to provide further submissions in that regard.

  • [95]  Both parties may seek to appear to address the issue of special costs based on my finding of an abuse of process.

This decision is an important one in terms of ensuring more fairness to injured Plaintiffs bringing claims. It is also important in terms of the cost of this type of litigation; putting more onus on insurance companies like ICBC to fairly adjust and settle claims, rather than playing fast and loose with the truth.  Extra court days, preparation and costs had to be devoted to dealing with the issue of liability when the Corporation had already accepted that it’s insured defendant was responsible for causing the subject accident. In a time where insurer’s like ICBC pay for ads that like to promote blame against claimants for rising claims costs, this case demonstrates that it is in fact ICBC that conducts itself in a way that adds unnecessary costs. 

The Nixon Wenger legal team will be applying for special costs against the defendant and his insurer as ordered by Madam Justice Gropper; that decision will be an interesting one as well.

November 17, 2016
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Accident Involving Vernon Motorcyclist Resolves

Personal Injury, Decisions and Settlements

Michael Yawney QC was retained by a Vernon man and mechanic who was knocked off his motorcycle by a motorist that did not see him. He suffered soft tissue injuries that impacted his ability to run his mechanic business. He was able to substantially recover and taking extensive physiotherapy. His claim was resolved without a trial for $170,000.00 plus costs and disbursements.

November 17, 2016
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These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visit to our site you can disable tracking in your browser here:

Other external services

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

Other cookies

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Privacy Policy

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

Privacy Policy
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