( Disponible en anglais seulement )
The Court of Appeal for Ontario has granted the appeallants leave to appeal in two loss transfer matters: Federation v. Kingsway and ING v. Markel. The Court of Appeal will decide when the two-year limitation period for loss transfer matters starts to run under the Limitations Act, 2002.
In Federation, the arbitrator held that a rolling limitation period starts one day after the second party insurer receives a loss transfer request for indemnification. In ING, a different arbitrator held that the limitation period starts the day the first party insurer receives a response from the second party insurer denying a loss transfer request.
On July 12, 2011, Superior Court Justice Edward Belobaba « marginally » upheld the arbitrator’s decision in Federation. In his brief Endorsement, the judge admited that he could not « improve on the analyses of the limitations issue » by the arbitrators and that what « is needed is a clear (probably appellate) decision » choosing one approach over the other.
A hearing date for the appeal has not been scheduled yet.