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Update on Co-Parenting during COVID-19

Blog

 
Beginning in March, 2020, the British Columbia provincial government imposed social distancing directives to reduce the spread of the novel coronavirus.  
 
One consequence of social distancing is that separated parents have had to figure out if, or how, to exchange their children between households.  This has become even more difficult as the various courts in BC have suspended regular operations.  The courts are currently only hearing essential and urgent matters by videoconference or telephone.
Over the last few weeks there have been a number of reported court decisions in British Columbia regarding urgent parenting issues during the pandemic.  We’ll take a look at a few of these cases to provide a sense of how the courts are dealing with co-parenting at this time.
 
•    On April 1, 2020 the BC Provincial Court released its decision: V.C.S. v. T.S., 2020 BCPC 60.  The father, from Prince George, sought the return of his two children their mother’s home in Pitt Meadows (a 750 kilometer drive from Prince George).  The children were visiting with their mother in Pitt Meadows during spring break.  The mother refused to return the children as she was fearful of driving with the children and visiting public locations such as gas stations, restaurants, etc. with the children.  The judge found that using businesses like gas stations posed a limited risk but said, “despite that risk, I note the health authorities have not sequestered everyone to their houses and banned all public outings.  Rather, safety protocols have been implemented to mitigate the risk of transmission.” (paragraph 16).  The judge went on to say that the mother could follow some simple measures to reduce the risk of entering businesses, such as standing away from others, washing hands in the bathroom, and even said “the children could be given disposable gloves or towelettes to use as makeshift gloves when making contact with handles, lids, and paper rolls in the course of using the washrooms.  They can lay down a toilet paper lid before they sit.  They can wash their hands thoroughly upon completion.” (paragraph 22).  The children were ordered to be returned to their father.
 
•    Also on April 1, 2020, the BC Provincial Court issued its decision: N.J.B. v. S.F., 2020 BCPC 53.  In this case, the father asked the court to suspend the mother’s parenting time with their child.  The father was concerned that the mother would not obey the social distancing directives and expose the child to the virus.  The court relied on an expert psychologist’s recommendations (Dr. Michael Elterman) respecting co-parenting during COVID-19.  The judge noted that Dr. Elterman has considerable expertise in child matters “and is well known to this court.” (paragraph 27).  The judge set out Dr. Elterman’s recommendations and said they “should form part of decisions regarding parenting arrangements,” which include:
 
(1) If a parent has had contact with an infected party, they should disclose this immediately to the other parent.
(2) If the parent is infected or even ill with symptoms or needed to be tested for Covid-19, they should not take the child.
(3) If the parent is in a home with older family members or friends or with individuals who are immune-compromised, the child should not be in that home.
(4) There should be no play dates and the child should not be taken to family or social gatherings.
(5) If parenting time is to occur in a public place such as a community centre, a mall or a restaurant, then it should be suspended.
(6) If a supervisor is required and who is not the spouse of the parent and living in the home, then the parenting time should be suspended.
(7) If either parent or anyone in the household is in an Essential Service or still working with the public, eg. doctors, nurses, at a supermarket or pharmacy, flight attendant, etc.) then this can represent an increased risk to the child.  (paragraph 28).  
The court in N.J.B. clearly stated it will require more than mere allegations that a parent will not follow social distancing directives.  Rather specific examples and evidence are required in order to suspend one part’s time with the children (paragraph 31, citing an Ontario case: Riberio v. Wright, 2020 ONSC 1829).  The court in N.J.B. concluded that the father had not proven that he mother had done, or would do, anything to increase the risk of the child contracting coronavirus and he was, accordingly, ordered to follow a prior order.         
If you have questions about an urgent parenting concern, or any other family law matter, our experienced team of family law lawyers are available to help you assess your specific situation and provide trusted advice on how to move forward during this uncertain time.   
Darren maintains a broad practice in family law including divorce, common law separation, division of assets, parenting, custody, mobility/relocation, and child and spousal support. His diverse litigation background serves him well when acting for clients in more complex family law disputes. Darren always strives to provide tailored, down-to-earth advice for his clients.  

April 26, 2020
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Preparing for Your Estate Planning Meeting

Real Estate, Wills and Estates, Business Law, Blog

Estate planning is an important part of protecting your family and loved ones in the event of your death or loss of capacity. It is always a good idea to consult with a legal professional who can advise you on your rights and obligations and help you prepare your Will and incapacity planning documents. Below are some things to think about before meeting with a lawyer or notary:

Will:

1.     What are your general objectives? What do you want to achieve? What do you want to avoid? For example, you may wish to ensure your spouse and children are looked after and reduce the impact of taxes.

2.   Who do you want to appoint as executor of your Will? This is the person who will administer your estate. Often spouses are appointed as executor since your spouse likely has the most knowledge of your assets. Make sure to speak to your intended executor(s) in advance to make sure he or she is willing to act. Being an executor is not a fun job and naming a person as executor does not mean that person is obligated to take on the role. Consider who you would like to appoint as an alternate executor if your first choice is unable or unwilling to act as your executor.

3.     Consider whether you will gift any specific assets or cash to a particular beneficiary or beneficiaries – for example, a cash gift of $1,000 to a close friend or your jewellery to a granddaughter. Please keep in mind that assets will change over the years.  

4     The residue of your estate is everything that is left after payment of debts, funeral expenses, executor’s fees, taxes, legal and other expenses incurred in the administration of your estate, and following any gifts of specific assets or cash, if any. Consider how you want the residue of your estate to be distributed. You should also consider whether you want your beneficiary or beneficiaries to reach a certain age before they receive their share of your estate. Are any beneficiaries disabled and receiving government benefits? If so, it is important to develop an estate plan that does not inadvertently disqualify the beneficiary from receiving those government benefits. 

 5     If your beneficiary or beneficiaries have died before you, what happens to their share? Will it go to that beneficiary’s children, if they have any children alive on the date of your death? Will it go to a different beneficiary? For example, you may wish to leave everything to your spouse if they survive you. If your spouse has died before you, you may state that his or her share will be evenly distributed among your children (if any). What happens if one or more of your children have died before you? Do you want that child’s share to pass to his or her children or do you want that child’s share to be divided among his or her siblings who are still alive at the time of your death?

6.      How would you like your estate distributed in the event of a family tragedy where all of your beneficiaries have died before you or at the same time as you? Will your estate go to your parents? To your siblings? To a charity? To a friend?

In British Columbia, the Wills, Estates and Succession Act (“WESA”) is the governing legislation about wills and estates. Under WESA, spouses (both legal and common law), as well as natural and adopted children, can apply to court to vary the Will of a deceased spouse or parent if the Will does not make adequate provision for his or her proper maintenance and support. The court may disregard the wishes of the deceased if the reasons for disinheritance are not rational or reasonable. The court may amend the distribution to one that it thinks is fair in the circumstances. 

Power of Attorney

A power of attorney grants someone else the right to act on your behalf with respect to your financial and legal affairs. It is important to appoint someone you trust because the power of attorney is basically like a permission slip for that person to manage your assets. Once you grant someone power of attorney, they become known as your “attorney.” The scope of the authority can be as broad or as specific as you like. You may allow your attorney to manage all aspects of your financial and legal affairs indefinitely, or you may wish to restrict it to specific tasks or dates. The right to act as your attorney may be effective immediately or only in the event you have lost mental capacity and are incapable of managing your own affairs. It is important to include language in the power of attorney that the authority continues despite your loss of mental capacity in order to make it an “enduring” power of attorney.

Consider who you would like to appoint as your attorney and who you would like to appoint as an alternate attorney if your first choice is unable or unwilling to act. Consider whether you would like your attorney’s authority restricted in any way and when you would like the attorney to be able to start acting on your behalf.

Representation Agreements

A representation agreement is a legal document appointing someone to assist you or act on your behalf for health care and personal care matters. This tool gives someone the right to give consent or refuse to give consent on your behalf, if you are unable to do so yourself, to minor or major health care (including decisions about medication, tests, surgery and end of life comfort care) and the right to make decisions about your personal care, such as living arrangements, diet, clothing, exercise, taking part in activities and personal safety issues. Enhanced representation agreements include end of life decisions and give your representative the authority to refuse life support under certain circumstances.

Having a representation agreement ensures that someone you trust will have legal authority to carry out your wishes if you are incapable of giving or refusing consent. By setting out your end of life decisions in the agreement, you may provide comfort and ease the emotional anguish of those who have to decide whether life support measures should be continued or withheld.

Consider who you would like to appoint as your representative and who you would like to appoint as your alternate representative if your original representative is unable or unwilling to act. Consider whether you want life support measures continued or withheld (i) in the event you are terminally ill with no chance of recovery; and (ii) in the event you are in a permanent vegetative state with no chance of recovery. Consider whether you would want medicine administered to you in your terminal state even if it hastens your death.

Krystin Kempton is a Partner at Nixon Wenger LLP where she has a general solicitor’s practice, advising corporate and individual clients on corporate and commercial transactions, lending and borrowing, wills and estates and real estate matters.

April 23, 2020
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How does Occupiers Liability apply during the COVID-19 pandemic?

Real Estate, Business Law, Litigation, Blog

In British Columbia, the Occupiers Liability Act, RSBC 1996 c 337, sets out the legal obligations that occupiers owe to people visiting their premises.  Occupiers can be individuals or businesses who are in physical control of the premises, or those who have responsibility for, and control over, the condition of the premises, the activities conducted on the premises, and who is allowed to enter the premises.  This can include business owners, landlords, tenants, and home owners. 
Occupiers owe a legal duty to ensure visitors are reasonably safe in using their premises.  This duty applies to the condition of the premises, activities on the premises, or conduct of others on the premises.  It is important to note that there are many factors to assess when determining where the responsibility falls in the event of injury or loss.  How far this duty extends will depend on the circumstances of each situation.
You may be wondering: how does this apply during a pandemic and the current context of COVID-19?
Generally, the liability of occupiers remains the same.  However, be aware that occupiers may be found liable for the spread of the virus at their premises.  If an occupier fails to take reasonable care to respond after a person known to have been infected with COVID-19 attended the premises, the occupier may well have breached its legal obligations under the Occupiers Liability Act. 
Reasonable response efforts to ensure the safety of visitors may include:
•    immediate sterilization of the premises;
•    closure of the premises during sterilization efforts; and
•    clear and timely warnings to visitors and employees.

It is important for occupiers not to ignore applicable privacy laws in these circumstances.  While appropriate information may need to be shared, specific names should not be released.

Occupiers should also consider having a formal COVID-19 plan in place that sets out response efforts in the event of virus exposure. 

We stress that all cases are fact specific.  The information above is intended to provide some guidance during these uncertain times.  You should obtain legal advice specific to your situation if you have had a potential exposure at your premises or if you have been exposed to the virus while attending premises.

Allison is an Associate in the Civil Litigation practice group at Nixon Wenger LLP.  She has a general civil and commercial litigation practice, with an emphasis on tort related disputes, contract disputes, personal injury litigation, employment matters, and maritime, shipping, and environmental law.  Allison has represented clients at all levels of court in British Columbia, and works with her clients to find solutions that work best for them within the litigation process.    

April 9, 2020
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What is a Power of Attorney and Why Do I Need One?

Real Estate, Wills and Estates, Family Law, Business Law, Blog

What Incapacity and Estate Planning Documents Do I Need?
We recommend you have a Power of Attorney, Representation Agreement, and Will.
What Is a Power of Attorney and Why Do I Need One?
A Power of Attorney is a legal document that you can use to appoint a trusted person(s) to make financial and legal decisions for you, in the event you are incapable of doing these things yourself while you are alive.  The person you appoint is called your “attorney”. You can give your attorney broad powers to step into your shoes as needed to deal with your finances and your real estate or your business and legal matters, OR you can place limits on the power that you give them. A Power of Attorney is a valuable part of your estate and incapacity planning.
Who Should I Choose as my Attorney?
You should appoint someone you trust because a Power of Attorney is a powerful document. Many people choose their spouse, a close family member or friend. A person does not have to agree to act as your attorney, so you should talk to them ahead of time and make sure they are up for taking on the job.
You can appoint more than one attorney, with different or the same authority. If you appoint more than one, they must act unanimously unless you state otherwise.
What Are the Duties of My Attorney?
The Power of Attorney Act of B.C. confirms that an attorney must act honestly and in good faith, must exercise the care and skill of a reasonably prudent person, keep proper records for inspection, keep your assets separate from your attorney’s assets, and always act in your best interests.
Does a Power of Attorney Allow my Attorney to Make Health Decisions For Me?
No. If you want to appoint a legal representative to make personal and health care decisions for you if you cannot make these decisions on your own, you will need to make a Representation Agreement.
Can I Cancel my Power of Attorney if I Change My Mind?
Yes. As long as you are mentally capable, you can revoke/cancel a Power of Attorney.

We at Nixon Wenger LLP specialize in estate and incapacity planning. Please contact us and we would be happy to help you prepare a Power of Attorney as part of your complete estate and incapacity plan.

Elise Allan is a Partner at Nixon Wenger LLP who works extensively with individuals, assisting them in such matters as the purchasing and selling of real estate, preparing Wills, Powers of Attorney and Representation Agreements as well as obtaining Grants of Probate.

April 7, 2020
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Force majeure: Can Covid 19 release you from your contract obligations?

Real Estate, Business Law, Employment Law, Litigation, Blog

Under general principals of contract law, a party has a defense against performing under a contract where that performance becomes impossible due to unforeseeable events outside of the parties’ control.  If disaster strikes, a non-performing party can resort to a claim of “force majeure”, sometimes called “acts of God”, to forgive them from living up to their responsibilities.

A pandemic can be one of those events. Some commonly listed force majeure events include natural disasters such as floods, earthquakes, or hurricanes; war; terrorist acts; government action such as expropriations or changes in laws; union activities such as strikes and slow-downs; shortages of necessary materials… and, if the contract provides for them, also epidemics and quarantines.  

General economic conditions are not force majeure events.  Governmental restrictions may qualify, if directly related to the force majeure event, and if they directly relate to the alleged breach of contract, but reduced demand and business are usually found to be more a fact of life than an act of God:

While relatively few cases have interpreted the impact of pandemic on force majeure clauses, previous cases do offer some guidance. Courts have found that generalized economic hardship or increase in expenses, without more, does not constitute a force majeure event. As a result, it will be difficult to avoid an obligation to purchase goods or services merely because customer demand has decreased. Also, even if an unforeseeable and extreme disaster occurs, a contract’s force majeure provision will still control with regard to the parties obligations and may override other common law defenses used to avoid performance. For this reason, it is imperative that companies read contracts closely, or consider engaging counsel, to determine what rights they have before acting (or not acting) on a contract. Finally, courts are split as to whether intervening governmental acts (such as changes of regulations, emergency declarations, etc.) will excuse performance under contract, but the contract itself will still likely control as to which party bears the risk of the nonperformance.

National Law Review: COVID-19: Force Majere Event? March 19, 2020

If a contract’s force majeure clause includes terms such as “epidemic” or “quarantine” or “pandemic”, then the clause can be invoked during the current Covid-19 crisis to avoid living up to contractual responsibilities that have been rendered impossible.  Even if a contract has a force majeure clause that does not include such terms, it may still be possible to defend against an action for breach relying on the force majeure clause, if the language of the clause is broad enough to encapsulate disasters such as pandemics.  

However, in any case where such a clause is invoked, in order for the defense to work, the party invoking it must also show that they took steps to mitigate the damage and that full performance was truly impossible – together with any other contractual obligations that might be necessary to adhere to when invoking the clause.

If there is no force majeure clause at all, or if there is no reasonable way to bring the COVID-19 pandemic within the terms of the force majeure claus, then there still will be defenses to breach or non-performance on the commonlaw bases of impossibility or frustration of purpose.

All of these defenses are pretty strict.  The general principle of contract law is that the parties to an agreement assume the risk of their own non-performance unless the contract itself says otherwise.  In order to claim impossibility or frustration, the defending party has to show that the event offends, in a way that was unforeseen to the contracting parties, a foundational assumption of the agreement.  For instance: if the subject matter of the contract turns out to be non-existent, then the contract will be impossible to perform.  However, it is not a basic assumption of the parties that market conditions or financial situations will remain favourable to the parties.  

In this case the event is a global pandemic.  The problem with pandemics (well, one of the many problems with pandemics) is that they only indirectly affect businesses.  A pandemic is not that kind of natural event that destroys infrastructure or physically prevents businesses from operating.  Instead, it is the social and governmental response to the pandemic that has the effect of interfering with business viability.  Laws that are changed to address it are laws of general application that only affect your ability to live up to your contracts.

At the end of the day: contracts are enforceable.  Rent is payable. If rent is not paid, that is a breach of contract.  Force majeure is a defense available to a claim for that breach.  As identified above, general economic effects do not constitute a force majeure event.  

Unless the contract specifically defines pandemic as a force-majeure escape hatch, it seems unlikely that it would be considered one.  

However, the global nature of the coronavirus crisis lends itself to other practical considerations.  Unless there are particular circumstances that are quite significantly different than those being faced by most businesses today, it may not be in anyone’s business interests to force strict compliance with contracts right now.  After all, if all contracts are strictly enforced, that may have uncomfortable effects on the very parties who insist on strict enforcement:

As the COVID-19 pandemic continues to develop, businesses should take proactive steps to ensure continuity of operations sufficient to meet existing contractual obligations and evaluate whether their counterparties are doing the same. If companies expect that COVID-19 may result in their own or their counterparties’ inability to satisfy contractual obligations, they should assess the viability of either force majeure or common law principles of nonperformance excusal. This assessment may also be rendered more complicated by the fact that many companies will be on both sides of this issue, as the performing party in some cases or the receiving party in others… Businesses may wish to avail themselves of a force majeure clause or the common law principles in connection with certain contracts, but resist such a claim by their counterparties to other contracts. Companies will therefore need to be mindful of the broader implications of asserting these provisions and principles.

P.Weiss: Force Majeure under the coronavirus Pandemic: March 16, 2020

COVID-19 related contract breaches will cut in all directions.  If you insist on strict compliance with others, they may insist on strict compliance with you.
Andrew Powell practices a wide range of civil litigation with a focus on business or commercial disputes, including breach of contract, lease and land use issues, corporate disputes including liquidations and shareholder issues, and realization and enforcement. Andrew also practices estate litigation, including wills variation claims.

March 28, 2020
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Employment Issues During COVID-19

Business Law, Employment Law, Litigation, Blog

The COVID-19 pandemic has created unprecedented circumstances for Employers and Employees.  Many people  have questions with respect to their rights as Employers and Employees, and, particularly for Employers, potential liabilities.

The British Columbia Employment Standards Act sets out minimum standards that employers must adhere to.  COVID-19 does not change or suspend statutory rights or obligations.  Failure to adhere to these standards may result in claims against Employers and even personal liability for directors and owners of companies.  Being pro-active and getting good advice now can help avoid problems and encourage creative and pro-active solutions to preserve goodwill and morale in the workplace, and to make the best of a bad situation for all.

Don’t be fooled by one size fits all solutions.  Each situation is different and requires careful review and planning.

Don’t get caught out.  Call for assistance.

March 27, 2020
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COVID-19, Child Support and Layoffs

Family Law, Employment Law, Litigation, Blog

When parents separate, their children are entitled to child support.  The Child Support Guidelines set out how child support is determined.
 
The amount of child support depends on the income of the parent who pays the support, or both parents’ incomes if they share time with the children.  If income goes up, or down, normally this will result in an adjustment to child support payments.

What Happens to Child Support if the Parent Paying Child Support Loses His / Her Employment?

The COVID-19 pandemic has had a significant impact on all of our lives.  Most sectors of the economy have been affected and many businesses and employees will face a significant decrease in earnings.

So, what happens if a parent is laid off or terminated from their job during the COVID-19 pandemic but has been paying child support?

All parents in British Columbia should be aware that as of March 20, 2020 the various courts in this province have suspended regular operations.  Accordingly, child support disputes likely will not be heard by the courts until they resume regular operations following the COVID-19 pandemic.  Thus, parents are encouraged to find a workable solution to any child support disputes during this time.

If you are paying child support and find yourself laid off or terminated from your employment, the best course of action is to immediately inform the other parent.  Be open and transparent and let them know if you will be receiving any of the benefits offered by the provincial or federal government, such as employment insurance.  Try to find a mutually agreeable solution so that you can still pay some support rather than stopping support altogether. 

If you are paying support payments to the Family Maintenance Enforcement Program (FMEP), also inform them if your employment status changes.  On March 19, 2020, FMEP posted the following update on its website in regards to the COVID-19 pandemic:

“If you are a payor, we acknowledge you may have difficulty [during the COVID-19 pandemic] paying your full amount of maintenance that is due. You are, however, still required to pay the maintenance owing under your order or agreement. If you are unable to make full payments it is very important that you contact us by signing into your web account and sending a web message …” https://www.fmep.gov.bc.ca/whats-new/

If you are concerned about paying or receiving child support payments, our experienced team of family law lawyers are available to help you assess your specific situation and provide trusted advice on how to move forward in this uncertain time.

Darren maintains a broad practice in family law including divorce, common law separation, division of assets, parenting, custody, mobility/relocation, and child and spousal support. His diverse litigation background serves him well when acting for clients in more complex family law disputes. Darren always strives to provide tailored, down-to-earth advice for his clients.  

March 24, 2020
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Impacts of COVID-19 on Parenting and Custody Matters

Family Law, Litigation, Blog

The COVID-19 pandemic has caused unprecedented levels of uncertainty in all aspects of our lives, including in the operation of our courts.  As of March 20th, the various courts in British Columbia have suspended most of their operations. 

Currently, the courts in BC are only hearing essential and urgent matters.  These matters include issues relating to the safety of a child or parent due to a risk of violence; wrongful removal of a child from a jurisdiction; or matters relating to the well being of a child.  All other matters are suspended and will not be heard by the courts until at least May, 2020. 

My ex and I share time with our child – what can we do in an age of “social distancing”?

For most of us, the phrase “social distancing” didn’t exist until a few weeks ago.  It’s now become our reality.

If you and your ex spouse have kids and share them between your two homes, what do you do?  Do you exchange the kids between two houses?  Do you send the kids to your ex’s house?  Should you protest if your ex won’t send the kids to spend time with you?

The only clear answer is that there isn’t a clear answer.  Each case will be dependent on your specific circumstances. 

The best approach parents can take is to consider only the best interests of the kids.  In fact, this is the only thing a court will consider when deciding an appropriate parenting arrangement.  Section 37 of the British Columbia Family Law Act sets out a number of factors a court must consider when deciding what is in the best interests of a child.  The most important factors in light of the COVID-19 outbreak are:

•    the child’s health and emotional well-being;
•    the ability of each person … who has parenting time or contact with the child, to exercise his or her responsibilities;

Although the COVID-19 pandemic is new, courts in BC have considered the issue of when a parent has a contagious virus and seeks parenting time with a child.  In D.M.M. v. D.F., 2015 BCPC 0310, the father previously had the Hepatitis C virus and the evidence at trial showed he did not take sufficient care of his hygiene such that his daughter may have been exposed.  The father said he had recovered from the virus but the court said “while his freedom from the virus is obviously very good news, I remain concerned about [his] attitude towards [the daughter’s] safety, since he was contagious at the time he was with her.” (para 72).  This finding, among other findings at trial, resulted in an order that the mother have primary care of the daughter. 

Thus, it is imperative that parents take all precautions and follow the advice from governments and health authorities during the COVID-19 pandemic.  Our experienced team of family law lawyers are available to help you assess your specific situation and provide trusted advice on how to move forward in this uncertain time.  
Darren maintains a broad practice in family law including divorce, common law separation, division of assets, parenting, custody, mobility/relocation, and child and spousal support. His diverse litigation background serves him well when acting for clients in more complex family law disputes. Darren always strives to provide tailored, down-to-earth advice for his clients.  

March 20, 2020
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It’s time to privatize auto insurance in BC!

Personal Injury, Litigation, Blog

The vast majority of British Columbians are sick and tired of ICBC and its excuses.  We have been through a year of ICBC blaming claimants, the courts and lawyers for its allegedly poor financial performance.  At the same time insiders of ICBC have publicly said that there was no “financial mess” and that the corporation was actually going to make a profit in 2018.  ICBC used the excuse of financial performance to have the government change the legislation that applied to it so that it could unload costs onto private insurers and reduce claims costs by circumventing the law of damages with an injury cap.  And after doing that ICBC significantly raised rates for everyone.  

Over the last few years in my practice as a senior litigation lawyer I have dealt with ICBC on multiple claims where they have taken very unreasonable positions and caused matters to go to trial, only to cost the corporation hundreds of thousands of dollars more for a particular claim.  In some cases millions of dollars more.  Recently there was another example of this in a case that went to trial (and is now public record) called Bonneau v. Neate et al.  The ICBC adjuster took a very unreasonable position on damages, even though liability was admitted, and refused to put any more money on the table to resolve the claim.  The end result was that ICBC paid over $100,000 more than it could have resolved the claim for, and also will have to pay double costs on top of that.  The Supreme Court rules provide for an increase in costs where a party unreasonably failed to accept a reasonable offer to resolve the claim.  In the last few years the number of claims where ICBC has taken a similar position has increased significantly.  It appears to be an intentional plan to run up the costs and the only conclusion one can reach is that they’re doing so because they have easy targets to blame: claimants, or injured people, the courts and of course lawyers.  It also allows them to hide their poor business practices because they can blame others and not take responsibility for their failed performance.

All of this supports the need to privatize auto insurance in British Columbia and get rid of the ICBC monopoly. At the end of the day, ICBC as a monopoly is just another form of indirect taxation of consumers in British Columbia.  The profits it has made over the years has gone to the government’s general revenues and not been kept in the corporation.  Both main political parties are guilty of this.  The politicians do ICBC’s bidding to cover up its inefficient business practices and give it more tools to take away the rights of injured people in B.C. and so there’s no solution politically between either of the parties.  The simple reality is ICBC should be privatized and an open market for competition for auto insurance should be in place in British Columbia.  It works in other jurisdictions in Canada to lower auto insurance premiums; it should happen here.
Michael Yawney QC is a senior litigation partner at Nixon Wenger LLP, the North Okanagan’s largest law firm. He has been a member of the Association for Injured Motorcyclists (AIM) for many years, on the Board of Governors for the Trial Lawyers Association of British Columbia, is a member of the Canadian Bar Association and has represented many personal injury clients. The opinions expressed herein are the opinions of the writer and are based solely on his views and experience over the many years he has practiced personal injury law in British Columbia.

November 17, 2019
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More ICBC Misinformation…

Personal Injury, Litigation, Blog

A recent court decision by Chief Justice Hinkson where the government’s unilateral changes to the Supreme Court Rules without the usual consultation with the legal profession and the judiciary was found unconstitutional has resulted in more political rhetoric, ICBC excuses and misinformation. The Attorney General David Eby responded to the ruling by alleging that the government would now be out $400 million in revenue and would no longer have a surplus. He also alleged that ICBC paid out $1.9 billion to law firms (as part of a smear tactic to mislead the public as to lawyers and judges being the problem, not the actions of ICBC!).  We pay taxes to the government to fund it’s operations; to suggest that a court case means no government surplus is absurd and exposes the real basis for ICBC: indirect taxation!

This misinformation has to stop.  ICBC’s own employees have said there is no dumpster fire at ICBC and that the losses claimed are not correct. ICBC regularly uses “numbers” it creates to lobby the government to do it’s bidding. For example, within the last year magically creating almost $700 million in “estimates for losses” with a stroke of a pen (by re-assessing claim exposures – allowing it to adjust up an exposure to create a picture of more financial loss).  From the last financial statement published by  ICBC in March of 2019, it has an arbitrary “change in estimates for losses” of over $1.2 billion. It also notes that it’s revenues are nearly $6 billion dollars with total assets of over $16 billion….yet it claims that law firms were paid $1.9 billion with the impression that they are sucking the corporation dry!  This is simply misinformation to deflect responsibility! Neither Eby or ICBC have told you that litigated claims with law firms representing plaintiffs is only a small proportion of the claims it pays out in any given year; this isn’t stated because they want the public to blame lawyers, judges and injured people for the high cost of premiums and not tell you the real truth of it’s financial operation. ICBC doesn’t tell you how it has created millions and millions of unnecessary extra costs by refusing to deal fairly with claims; running claims to trial that should resolve and costing the corporation significant extra costs.  I have many clear examples of this, in particular with two claims within the last year that went to trial;  ICBC’s refusal to consider fair offers to resolve the claims has resulted in over $600,000.00 in unnecessary expense for the Corporation.  That is  only on two claims, there are many more examples of the same thing and it happens all the time. Right now ICBC’s strategy is to run every claim to trial to increase the costs to help continue the blame game and deflection of responsibility.  

ICBC gets away with this because it is not accountable. It simply blames claimants, lawyers and judges…and doesn’t take responsibility.  Ask yourself why we pay the highest rates in the country and why ICBC would lie about it’s financial performance?  So it can continue to deflect responsibility and blame others… and carry on providing government with revenue that amounts to indirect taxation, while raising insurance rates.

Michael Yawney QC is a senior litigation partner at Nixon Wenger LLP, the North Okanagan’s largest law firm. He has been a member of the Association for Injured Motorcyclists (AIM) for many years, on the Board of Governors for the Trial Lawyers Association of British Columbia, is a member of the Canadian Bar Association and has represented many personal injury clients. The opinions expressed herein are the opinions of the writer and are based solely on his views and experience over the many years he has practiced personal injury law in British Columbia.

October 29, 2019
https://www.nixonwenger.com/wp-content/uploads/2020/10/Nixon-Wenger-Logo-2.png 0 0 NW Admin https://www.nixonwenger.com/wp-content/uploads/2020/10/Nixon-Wenger-Logo-2.png NW Admin2019-10-29 00:00:002021-02-19 00:24:42More ICBC Misinformation…
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