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Mediations - What Are They and Who Pays For Them

Mediations – What are they and Who Pays for them?

If you have ever been involved in a lawsuit in Ontario, you may be aware of the term mediation. Mediation is an effective tool in resolving disputes, whereby a neutral third party assists in settlement negotiations. In Ottawa, Toronto, and Windsor, mediation is a mandatory part of the litigation process.

Litigation can get expensive. Who pays for mediation? In the context of Motor Vehicle Accidents, this question was answered in the recent case of Cioffi v. Modelevich et al. The Court ultimately found that the intention of Insurance Act was to promote settlement through mediation, and that the “Insurer is in a better position to absorb the costs and pay for the costs of the mediation.”[1]

Takeaway: If the Plaintiff requests mediation pursuant to s.258.6(1) of the Insurance Act, the Insurer shall pay for the mediation.

[1] Cioffi v. Modelevich et al., 2018 ONSC 7084 at para 6