How to use Form 4-Court Ordered Legal Costs

(Statutory Authority – Section 26, 27 and 28 of the Motor Vehicle Accident Claims Act)
 

The Form 4 is to be used to apply the Minister of Finance for the payment of a court ordered cost against, the Minister of Finance, an uninsured motorist, or the Superintendent of Financial Services. The court order must arise from litigation where:
 
1.  The Minister of Finance is liable to pay statutory accident benefits under section 6 of the Motor Vehicle Accident Claims Act; or,
 
2.  The Minister of Finance has status to defend an uninsured motorist under section 8 of the Motor Vehicle Accident Claims Act; or,
 
3.  The proceeding names the Superintendent of Financial Services as contemplated under either sections 12, 13 or 15 of the Motor Vehicle Accident Claims Act.
 

Prohibition:

 
This form is not to be used by an insurance company for reimbursement or indemnity for amounts that it will pay or has paid by reason of the existence of a policy of insurance within the meaning of the Insurance Act. These prohibited amounts would include legal costs incurred under an obligation to defend under any policy of insurance.
 

Statutory Recovery Remedies Suspended – MVACF Suspension of Uninsured(s) Driver’s Licenses:

 
Where this application is used to satisfy a cost order against an uninsured motorist(s), pursuant to section 10 of the Motor Vehicle Accident Claims Act, the driver’s license of the uninsured motorist(s) shall be suspended and only re-instated in accordance with that section. Accordingly, the applicant is advised that collection remedies available under sub-section 198(1) of the Highway Traffic Act are statutorily suspended, until MVACF has been repaid in full.
 

Assessment of the Solicitor-Client Account:

 
The Motor Vehicle Accident Claims Act requires an assessed bill of costs be filed with the Minister. The statutory authority for this requirement is excerpted below from Section 27 of the Motor Vehicle Accident Claims Act:
 

Bill of costs to be assessed and filed:

 
27. (1) No money shall be paid out of MVACF under or in respect of an order or judgment until the bill or bills of costs of the barrister or solicitor acting or who acted for the applicant in the application or action that resulted in the order or judgment, as assessed on a solicitor and client basis, is filed with the Minister.
 

Fees limited to assessed costs:

 
(2) No amount shall be charged or received either directly or indirectly for legal services in connection with any application or action referred to in subsection (1), other than the amounts as assessed on a solicitor and client basis in the bill or bills of costs.
 

No order required:

 
(3) No order is required to assess such a bill. R.S.O. 1990, c. M.41, s. 27.
 

Denial of Application:

 
If payment of this application is denied, it will be necessary to bring an application before a judge of the Court for a finding or determination in respect of any matter in connection with this application for payment out of MVACF.
 

Offences:

  
29. (1) Every person is guilty of an offence who,
a)  knowingly makes a false or misleading statement or representation in connection with the person’s entitlement to a benefit or payment under this Act to the Minister, the Superintendent or an employee or agent of the Ministry whose duties relate to this Act;
b)   willfully fails to inform the Superintendent or an employee or agent of the Ministry whose duties relate to this Act of a material change in circumstances in connection with the person’s entitlement to a benefit or payment under this Act within 14 days of the material change; or
c)   knowingly makes a false or misleading statement or representation in order to obtain payment from the Fund for goods or services. 2002, c. 22, s. 149.
 

Penalty:

 
(2) On conviction for an offence under this section, the person convicted is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000. 2002, c. 22, s. 149.
 
Claims Adjudication and Settlement Unit
Motor Vehicle Accident Claims Fund
Financial Services Commission of Ontario
5160 Yonge Street
P.O. Box 85
Toronto, ON M2N 6L9
Phone: (416) 250-1422 or
Toll Free: 1-800-268-7188
Fax: (416) 590-7076


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