The matter stemmed from a previous LAT Application in which Adjudicator Hines deemed an OCF-18 in the amount of $166,437.70 to be incurred pursuant to the SABS, and awarded the claimant an award equal to 25% of the OCF-18. Certas had issued payment for the OCF-18 on July 6, 2022, consisting of $166,437.70 for the OCF-18 and an additional $41,609.42 representing the 25% award and advised that it was having an accounting report commissioned to confirm the interest owing on the OCF-18. On October 7, 2022, Certas paid an additional $36,839.56 in interest owing, which did not include interest on the special award. The claimant filed a second LAT Dispute and argued that, when the SABS and the Regulation are read together, interest should be calculated based on the benefits awarded, plus interest, plus a 2% monthly compounded interest on that amount. The claimant argued that this was mandatory as stated in the SABS and the Regulation. The claimant further disputed the calculations within the Insurer’s accounting report. Certas argued that interest was not mandatory, and interest on the award was up to the Adjudicator’s discretion. As Adjudicator Hines had never expressly stated in her prior decision that interest was payable on top of the award, then it was not necessary and not ordered to be paid. Adjudicator Hines noted that her wording regarding her previous decision could have been clearer, but noted that she did allude to interest on the award being payable when she noted that the amount (of interest) payable was to be determined by the two parties. The parties had both retained expert accountants, and Adjudicator Hines ruled that the claimant’s report was not only far more detailed, but Certas’ report did not include interest payable on the award, and that the time frame calculated by the Insurer’s accountant did not comply with the SABS. Adjudicator Hines ruled in favour of the claimant and ordered that the $154,028.00 amount calculated by the claimant’s accountant, which included interest on the award, be paid.
