Newspaper article The Canadian Press

Insurer Must Pay $237K in Legal Costs to Elderly Woman Awarded $20K

Newspaper article The Canadian Press

Insurer Must Pay $237K in Legal Costs to Elderly Woman Awarded $20K

Article excerpt

Insurer must pay $237K for hardball litigation


TORONTO - An insurance company that played litigation hardball with an elderly car-accident victim has been ordered to pay $237,000 to cover the legal costs she incurred in winning a $20,000 settlement.

In her decision, Ontario Superior Court Justice Mary Sanderson said it would be contrary to public policy to reward the insurance company's uncompromising behaviour by assessing minimal costs against it.

"Insurers can, of course, pursue whatever strategy options they deem fit," Sanderson wrote. "But especially where such strategies may have wide ranging and adverse implications involving widespread denial of access to justice, the use of such strategies should not be encouraged by the giving of cost breaks on foreseeable costs consequences."

The case arose in February 2009, when the car Maria Persampieri, 84, was in was rear-ended. Persampieri initially sued for $1 million.

In response, the defendants' insurance company, Aviva Canada, said it would never pay her any damages. According to court records, Aviva said through its lawyers it would not offer a single loonie to settle. The company said it did not believe Persampieri had suffered any significant injuries and would fight her tooth and nail.

The only acceptable outcome was a zero dollar settlement, Aviva maintained. If Persampieri agreed to take no money, Aviva said it would not pursue legal costs against her. She refused.

However, following pretrial talks and mediation, Persampieri offered in March 2017 to settle for damages of $20,000, plus legal fees. Two months later, and just two weeks before trial, Persampieri said she would accept just $10,000.

"The parties all understood that to possibly succeed at trial, plaintiff's counsel would need to call sufficient medical and other evidence to convince a jury that her injuries had been caused by the accident, that they were real, to prove the quantum of her damages and to satisfy this court that the threshold had been met," Sanderson wrote. …

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