What are the consequences of an insurer's refusal to participate in mediation?
Ontario, Canada
The following excerpt is from Canfield v. Brockville Ontario Speedway, 2018 ONSC 3288 (CanLII):
However, in David v. Transamerica Life Canada, (2016) 131 O.R. (3d) 314, at para. 97, Price J. took a different approach, saying this concerning the costs consequences of an insurer’s refusal to participate in a mediation over disputed insurance proceeds: In cases where each of the parties has an arguable case, and each faces a risk of loss in the proceeding, mediation can offer a reasonable prospect of settlement. In such cases, a refusal to participate in mediation is a factor that the court can properly consider in determining whether the party has engaged in unreasonable conduct that has caused unnecessary costs to be incurred and that warrants rebuke by means of a costs sanction. This determination requires a case-by-case analysis.
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