Fratarcangeli v. North Blenheim Mutual Insurance Company: The Lat Can Extend The Sabs Two-Year Limitation Period

• Published date: 12 July 2021
• Subject Matter: Insurance, Insurance Laws and Products
• Law Firm: McLeish Orlando LLP
• Author: Ms Lindsay Charles and Cody Malloy (Summer Student)

In the recent Divisional Court decision of Fratarcangeli v. North Blenheim Mutual Insurance Company, 2021 ONSC 3997, released on June 15, 2021, the Court held that the LAT has the power, under section 7 of the LAT Act, to extend the two-year limitation period under section 56 of SABS. This decision grants the LAT broad power in allowing for claimants to bring disputes before the tribunal outside of the two-year limitation period.

For reference, section 7 from the LAT Act reads:

Despite any limitation of time fixed by or under any Act for the giving of any notice requiring a hearing by the Tribunal or an appeal from a decision or order of the Tribunal under section 11 or any other Act, if the Tribunal is satisfied that there are reasonable grounds for applying for the extension and for granting relief, it may,

(a) extend the time for giving the notice either before or after the expiration of the limitation of time so limited; and

(b) give the directions that it considers proper as a result of extending the time.

Section 56 of the SABS reads:

An application under subsection 280 (2) of the Act in respect of a benefit shall be commenced within two years after the insurer's refusal to pay the amount claimed.

The Court noted that the LAT "has exclusive jurisdiction under s. 280 of the Insurance Act to resolve any disputes 'in respect of an insured person's entitlement to statutory accident benefits or in respect of the amount of statutory accident benefits to which an insured person is entitled' " ¹

The main issues of this case surrounded the Court's statutory interpretation of the LAT Act:

[22] There are two issues regarding whether s. 7 of the LAT Act confers jurisdiction to extend the two-year limitation period in s. 56 of the SABS:

(1) whether s.7 has no application to disputes concerning the denial of benefits under the SABS because the limitation period is fixed under regulation and not "by or under any Act" within the meaning of s. 7; and,

(2) whether s. 7 does not apply because an application to the LAT for the resolution of a dispute under the SABS is not a "notice requiring a hearing" within the meaning of s. 7.

Issue 1 - "by or under any Act"

The insurers made three main arguments that the LAT can't extend the two-year limitation period under SABS:

• SABS is a regulation, not an "Act" ²
• The "paramountcy" argument: the specific language of section 56 of SABS conflicts with and is intended to prevail over the broad language of section 7 of the LAT Act ³
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