British Columbia Committee Hansard (Blues) — Thursday, March 5, 2020, p.m., Issue 325 (41st Parliament, 5th Session)
20200305pm-CommitteeA-Blues
British Columbia — Debates (Hansard)
Fifth Session, 41st Parliament
(2020) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Thursday, March 5, 2020
Afternoon Sitting
Issue No. 325
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Orders of the Day
Committee of the Whole House
Bill 9 — Evidence Amendment Act, 2020
M. Lee
Hon. D. Eby
Royal Assent to Bills
Bill 3 — Environmental Management Amendment Act, 2020
Bill 7 — Arbitration Act
Bill 8 — Education Statutes Amendment Act, 2020
Bill 10 — Municipal Affairs and Housing Statutes Amendment Act, 2020
Proceedings in the Douglas Fir Room
Committee of Supply
Estimates: Ministry of Education
Hon. R. Fleming
D. Davies
S. Cadieux
S. Bond
B. Stewart
T. Shypitka
S. Gibson
D. Ashton
N. Letnick
S. Sullivan
THURSDAY, MARCH 5, 2020
The House met at 1:32 p.m.
[Mr. Speaker in the chair.]
Orders of the Day
Hon. M. Farnworth: In this chamber, I call Committee of the Whole on Bill 9, the Evidence
Amendment Act. In the Douglas Fir Room, Committee A, I call the estimates debate
for the Ministry of Education.
Committee of the Whole House
BILL 9 — EVIDENCE AMENDMENT ACT, 2020
The House in Committee of the Whole (Section
B) on Bill 9;
S. Chandra Herbert in the chair.
The committee met at 1:35 p.m.
section 1.
M. Lee: I wanted to take this opportunity to address a few of the comments
made by the Attorney General in response to our second reading speech. I
think I will do that in sequence, as it comes up through the committee
process.
To be clear, there has never been precedent for an Attorney
General serving at the same time as minister responsible for ICBC. Is
that correct?
Hon. D. Eby: Mr. Chair, that’s totally unrelated to the bill. I will be
available through the estimates process for all kinds of conversations.
I have no idea what portfolios Attorneys General have held in this
province over the years.
I know, at one point, the Finance Minister was also the Attorney
General. I don’t remember, when the member for Prince George–Mackenzie
was Attorney General, what other portfolios she held. I think when the
Finance Minister was Attorney General, he was also the minister
responsible for gambling as well as Attorney General. I can advise the
member, off the top of my head, it’s not unusual for an Attorney General
to have multiple portfolios. I can also advise the member it’s totally
unrelated to the bill.
M. Lee: The point that I was trying to make yesterday, repeatedly, through
my second reading speech, was that, to my knowledge, in the history of
this province, there has never been an Attorney General that has acted
at the same time as the minister responsible for ICBC. When the Attorney
General took us through memory lane, talked about the previous
government and talked about the Attorney General in that previous
capacity…. She was not serving as the minister responsible for
ICBC.
What we have in front of this House is the Evidence Amendment Act
brought by the Attorney General of this province, amending the rules of
court for which plaintiffs can bring forward expert reports for the
benefit of cost saving for the Crown corporation for which he is
responsible, as minister responsible for ICBC.
That is a question that’s very relevant to this act. The Attorney
General, by bringing forward this bill, has brought forward to the floor
of this House his conflict. His conflict is illustrated by this act,
this bill. The fact that the Attorney General fails to see that
conflict, the fact that he fails to see the relevance of that conflict
to this bill, I think, is shocking.
Let me ask the Attorney General this question. What is the role of
the Attorney General to protect the rights of injured British Columbians
in this province?
Hon. D. Eby: I’ll advise the member again that I’m totally available to him in
the estimates process if he wants to ask questions about the role of the
Attorney General. If he doesn’t understand what the role is, I would
advise that he start with the Attorney General Act, which sets out the
responsibilities for the Attorney General. There are some very good
textbooks about the roles of Attorneys General. That is not the point of
committee stage on a bill related to the Evidence Act.
[1:40 p.m.]
I can advise the member that on many occasions, Attorneys General,
including in the previous Liberal administration, have…. In fact,
Suzanne Anton, when she was Attorney General, established an Attorneys
General committee exclusively for the purpose of making court rules with
only 90 days’ notice to the chief justice. So the suggestion that
Attorneys General should not be involved in the rules of how courts go
forward….
The Supreme Court of Canada upheld the idea that provinces can set
out how civil litigation proceeds — and rules and guidelines for that to
happen — in relation to tobacco litigation. That’s something we mirrored
in the opioid legislation.
I am interested to hear the member’s questions about the act. He
has a theory, disputed by no less an authority than the Supreme Court of
Canada, that the Attorney General’s role should not include putting a
limit on experts or being involved in how civil litigation proceeds in
the province. That is his theory. It’s an untested legal theory, and it
is unique to him, I think. I’m not sure it gets us any further along in
understanding this bill — the implications of it — and I welcome his
questions on that.
M. Lee: Mr. Chair, I think it’s important that we fundamentally understand
why this bill is in front of this House and how it is that an Attorney
General in conflict can bring forward this bill. Again, I’m not yet
talking about the rules committee or the jurisdiction of an Attorney
General to be able to work for the rules committee or not work with the
rules committee to bring forward changes to the rules of court by way of
the Evidence Amendment Act in this Bill 9.
Under the Attorney General Act — and I’m quite familiar with that
act — subsections 2(
a) and (
b) state the duties and powers of the
Attorney General in this province. “The Attorney General (
a) is the
official legal adviser of the Lieutenant Governor and the legal member
of the Executive Council,” and “(
b) must see that the administration of
public affairs is in accordance with law.” His primary responsibilities
are set out in this act. When we talk about the administration of public
affairs in accordance with the law and serving as the official legal
adviser to the executive council, that is his role.
I don’t see anywhere, in this Attorney General Act, saving costs
for ICBC.
Interjection.
M. Lee: The Attorney General Act is the act that we’re talking about
because the Attorney General is the one who’s tabling this bill. Which
hat is he wearing? Is it his responsibility as Attorney General to this
province, or is it as the minister responsible for ICBC? Let me ask the
Attorney General that question: which responsibility and which ministry
responsibility is he meeting when he tables this bill?
Hon. D. Eby: The astounding hypocrisy of the member on the other side to stand
in this place and impugn my conduct in bringing this bill forward…. His
own Attorney General, Suzanne Anton, when they were in power, caused the
entire rules committee to resign when she put forward an OIC to change
the civil tariff and then withdrew it because of the cost impact on
ICBC. Now, when she did that, was she acting as the Attorney General, or
was she acting as the puppet of the Finance Minister? What was happening
there?
Look. There is an obligation for the Attorney General to make sure
that justice is done in the province — absolutely — and that it’s done
according to the rule of law. What is in front of us is a proposed law,
which, I believe, government has full authority to bring forward, based
on Supreme Court of Canada jurisprudence about the ability of government
to prescribe how civil litigation proceeds in the province. It’s also in
keeping with the rules of court. It’s rule No. 1: the just and efficient
determination of disputes in the province.
Here we’re talking about efficiency, proportionality — key values
in the rules of court. The member is pretending this is some huge
abridgement of rights — unheard of, unprecedented — British Columbia
being the only province in Canada that doesn’t have a limit on expert
reports.
[1:45 p.m.]
We’re bringing in a limit on expert reports on the abuse of
experts by both sides. I apologize for sounding intemperate, but it is a
bit much to hear this kind of allegation coming from the other side —
that I’m in conflict of interest; this is improper; abuse of injured
people — when that member knows full well that if a person was in a
single-vehicle collision and they were catastrophically injured, their
lifetime benefit under their insurance scheme was $150,000. Well, ask
Lorraine Tran how that worked out for her. She lives in poverty because
of their insurance system — the insurance system, by the way, that I
assume he is standing and defending.
With all due respect to the member, I think it would serve
everybody in this place if he focused on the bill, asked questions about
the bill. If he feels there’s a provision of the bill that’s
unconstitutional, why doesn’t he ask a question about that provision of
the bill?
The Chair: Member, on
section 1 of the Evidence Amendment
Act.
M. Lee: Well, Mr. Chair, I don’t believe that he answered my
question.
We’re talking about the whole nature of the bill. I appreciate
that, and that’s what we’re here to do. But fundamentally, I think it’s
important that members of this House understand the conflict that the
Attorney General is in. It’s not an allegation; it’s a fact.
Well, the complaint ought to be to how this government has
structured the roles and responsibilities of the cabinet. I believe, as
we are having this discussion, that it’s a mere illustration of the
Attorney General’s and the Premier’s failure to see the conflict that
the member for Vancouver–Point Grey is in. It is endemic in terms of his
comments in response to my second reading speech in the last debate
yesterday.
What we will see today, as we go through this, is a repeated theme
of the struggle for this Attorney General. He has clearly lost sight of
his responsibility, first and foremost, to this province as the chief
legal officer responsible to protect the rights of injured British
Columbians in British Columbia. When we talk about the rules committee….
The reason why I focused on the rules committee in my second reading
speech is because of my concern about that conflict. This Attorney
General, when he brought forward rule 11-8, brought it forward without
any consultation with the rules committee.
The example he gave of the previous government and the previous
Attorney General was not on a matter that was substantive rights. Rule
11-8 and what is the subject matter of this Bill 9 is a fundamental
change to the manner in which plaintiffs can bring forward their cases
for recovery of damages in motor vehicle accidents but now expanded to
all personal injury actions — another point we’ll get to later on in
this bill.
In the other example the Attorney General has given, the rules
committee was consulted. The Attorney General did not have a conflict in
the way that is presented here. The Attorney General plays the role as
set out in the Attorney General Act to advise the executive council —
whatever considerations were made, decisions were made. The rules
committee was unhappy with the result and the decision by government.
But the rules committee was involved and was consulted, in this case, on
cost tariff — the determination of costs after a dispute, a case, is
tried and heard and decided upon.
We’re talking about how plaintiffs, British Columbians, can access
justice through our court system. This Attorney General, for this mere
focus on costs for ICBC — his other hat, his other responsibility — has
lost sight of access to justice. What he is doing, effectively, is
taking away the rights of injured British Columbians. I want to take
this opportunity to at least respond to the Attorney General’s comments
in that matter.
[1:50 p.m.]
The other comment that I would say: when we look at other
jurisdictions in this country as having some prescribed rules around
expert reports, there is no other jurisdiction in this country that
attempts to limit the jurisdiction and the discretion of the courts in
the manner in which rule 11-8 and Bill 9 are doing. It is completely
different.
The Attorney General can stand there and talk about other
jurisdictions, but the fact of the matter is, in this jurisdiction, the
Chief Justice of the B.C. Supreme Court has ruled his presented change
in rule 11-8, for reasons we will canvass here at committee. They’re the
same concerns about fettering and restricting and limiting the
jurisdiction and the discretion of the courts.
That is still the case in this bill. It’s still the same concern.
So again, when the Attorney General talks about the comments that I made
in this House, the finding is clear. The finding by the Chief Justice of
the Supreme Court of British Columbia is very clear. To limit the number
of expert reports, as rule 8 was attempting to do and is being done in
this proposed legislation under Bill 9, is the same….
The Chair: Excuse me, Member.
Minister of Labour, rising on a point of order.
Point of Order
Hon. H. Bains: I’m troubled. I’m watching, I’m listening, I’m hearing, and I’m
troubled by the conversation and the content of the conversation. The second
reading of the bill is over. It seems to me that we’re doing the second
reading all over again.
We’re in committee stage. I don’t even see which
section of the bill
is being debated, what questions are being asked. So I will ask that the
member be drawn to the act itself and the sections that we are debating so
that we could concentrate on the debate, just on that.
The Chair: Thank you, Minister. The Chair will take that under
advisement.
Member for Vancouver-Langara, you’re just reminded to draw your
discussion back to
section 1 of the Evidence Amendment Act. Debate of
the pros and cons of the bill did occur in second reading, and I would
ask that we try and draw our comments and questions to the bill
itself.
Thank you.
Debate Continued
M. Lee: I appreciate the point of order and your guidance, Mr. Chair, in
that regard. Appreciate the opportunity to respond to the comments of
the Attorney General in his conclusion on the second reading. Certainly,
Mr. Chair, we will pick up the additional points that we’ve had some
exchange on, with your assistance, as we look at the specific provisions
of this bill.
Having said that, on
section 1, could I ask the Attorney General
the purpose for which, in
section 3 of the bill, there are changes being
made to various sections relating to vehicle injury damages being
personal injury damages and the like?
The Chair: If I might, Member. We are still on
section 1. If the member
does have questions for
section 3, I would suggest that we ask them
there, unless members would like to pass sections 1 and 2. Then we
could ask questions on
section 3.
Are there any further questions on
section 1?
M. Lee: Okay. Well, let me ask this in terms of the nature of
section 1
and this bill. Since this bill is being brought pursuant to, in the
aftermath of, the Crowder decision — rule 11-8 — can I ask the Attorney
General the purpose for which Bill 9 is being tabled in this
House?
Hon. D. Eby: This bill is intended to ensure the just, speedy, efficient and
proportionate resolution of civil claims related to automobile
collisions.
M. Lee: So in terms of the actual ruling by Mr. Justice Hinkson, have
those considerations been incorporated in the manner in which the
Attorney General described this bill?
[1:55 p.m.]
Hon. D. Eby: We believe the proposed act is responsive to the concerns raised
by the court in that decision.
M. Lee: What assessment has the Ministry of Attorney General done in terms
of the potential for further constitutional challenges on the same
grounds that were set out in the Crowder decision?
Hon. D. Eby: The member will have to clarify what he means.
M. Lee: In the Crowder decision, there were concerns raised regarding the
inherent exclusive jurisdiction of the court — the concerns around the
limitations in the way that it was set out in rule 11-8. As we walk
through — and happy to do so — the various decision points by Chief
Justice Hinkson…. He had concerns regarding that attempt to restrict the
jurisdiction of the court.
When the Ministry of Attorney General looks at this Bill 9 and
considers the limitations still on judicial discretion…. Has there been
an assessment made by the lawyers in the Attorney General, advising the
member for Vancouver–Point Grey in his capacity as the Attorney General
of this province, on whether there are still points of challenge with
this bill and how it is amending the Evidence Act and whether that will
be challenged on the similar grounds as were challenged in the Crowder
decision on rule 11-8?
Hon. D. Eby: I do not have any such concerns that the bill is unconstitutional,
if that’s what the member is sort of circling around. If he’s asking
whether I’m presenting legislation in this place that I believe is
unconstitutional, the answer is no.
The member is welcome to ask that on any bill I introduce or any
bill any member on this side introduces. I’ll give him an honest answer,
including if I believe the bill is unconstitutional and still being
introduced. I think that happened once federally in recent memory. I
have no reason to believe that this bill is unconstitutional. I believe
it corresponds and responds to the reasons that the chief justice gave
in the Crowder decision.
There is discretion for the court — when we get to that section,
we can go through it in some detail — where justice requires additional
experts, giving the court the authority to allow additional experts. I
look forward to getting to that section.
M. Lee: I appreciate the response from the Attorney General in respect of
this bill. As I mentioned in my comments to date, there are
considerations regarding the concerns around the limitation on expert
reports under rule 11-8, which are very similar to — for reasons that we
will get to on this committee debate on this bill — concerns in respect
of this particular bill. So keeping that in mind, I ask: was the
Attorney General provided the same level of advice and assessment by his
ministry lawyers, in terms of constitutionality, when the government
proceeded with rule 11-8?
Hon. D. Eby: I’m not going to waive privilege over legal advice I’ve received.
Suffice it to say that I believe this bill is constitutional. What I
will say is: not helpful for the member to say that there are
considerations about concerns and considerations that are concerning.
What are they? Let’s get to the section. Tell me what
section in here
the member believes is unconstitutional. Let’s have that discussion.
Very hard for me to respond about concerns about concerning
considerations.
M. Lee: Well, we certainly will get to that on a section-by-section basis.
I believe that I took the time to set out those concerns in my second
reading speech yesterday. But happy to draw the Attorney General’s
attention to that as we go through the sections of this bill.
If I can also ask, in terms of the bill in front of us, what level
of consultations were had, if any, with the rules committee?
[2:00 p.m.]
Hon. D. Eby: None. This is the Evidence Act, so we did consult with the Chief
Justice of the B.C. Supreme Court.
M. Lee: Is it the view, then, that in respect of the requirements that the
Attorney General is under, he has met his obligations for
consultation?
Hon. D. Eby: Yes.
The Chair: Member, on
section 1.
M. Lee: What is the estimated savings to ICBC that the Attorney General,
in his capacity as minister responsible for ICBC, would indicate to this
House is the cost saving for this measure under Bill 9?
Hon. D. Eby: A very good question for estimates. I don’t have staff here from
ICBC today. This is an Evidence Act bill.
M. Lee: Well, I think we will have that discussion, then, at estimates, in
terms of the level in which ICBC estimates, in terms of their cost
saving, by limiting the rights of injured British Columbians…. I know
that in the Crowder decision, as I indicated yesterday, it has been
estimated to be $400 million, of which $200 million would be based on
lower court settlements. The comment that was made…. The fewer expert
reports, the lower the claim cost.
Be that as it may, if we turn to
section 1, can the Attorney
General explain the rationale in terms of limitation on expert reports —
the difference and the setting of one expert report for fast-track
vehicle injury proceedings versus other types of vehicle injury
proceedings?
Hon. D. Eby: One of the key values as Attorney General that I have in relation
to the justice system is that British Columbians have the right to an
efficient, speedy and just determination of their disputes. Part of that
is the value of proportionality — that the amount of process involved
and the costs involved with a claim should be proportional to the amount
that is at issue in the claim.
In fast-track proceedings, usually the value of the claim is
$100,000 or less. Therefore, the number of expert witnesses, which we
know — I assume we all know, but I don’t know that to be certain; I
assume the member knows this — are quite expensive. So when you end up
having to pay 20 or 30 or 40 or 50 or 60 percent of the value of the
claim on process, then justice is denied.
This value of proportionality is very important, and it is why the
member will see, in this bill, different numbers of experts depending on
the value of the claim. It’s an attempt to ensure that people have
access to resolve their disputes in a way that’s affordable, efficient
and just.
The member will see similar provisions in Commonwealth
jurisdictions, including in Canada, because this value of
proportionality is not, by any means, unique to British Columbia or to
this bill.
M. Lee: When we see language in
section 1 of this bill — for example, in
12.1(2)(a)(i) — around expert evidence on the issue of vehicle injury
damages…. The use of the term “damages,” of course, is explicit and
presumably intentional in its nature, as opposed to liability. So the
purpose for this limitation on expert reports, then, would not extend to
expert reports that are necessary for a determination of liability. Is
that correct?
Hon. D. Eby: That is correct.
[2:05 p.m.]
M. Lee: So if I could ask the Attorney General what the purpose of that
distinction is.
Hon. D. Eby: I’m advised that it’s common for liability issues to not really
recommend themselves to any particular number of reports, and they can
be quite complex in terms of the engineering reports and so on that are
required to determine liability. So that is the reason for leaving these
out and focusing on, essentially, medical-legal types of reports in
litigation.
M. Lee: I know that the information we were provided at the technical
briefing on this bill, myself and the member for Richmond-Queensborough,
was that the focus will be on solely medical reports and that expert
reports for crash analysis or demonstrating liability certainly would
not be caught within this bill. Are there other forms of expert reports
that are contemplated under this bill in terms of expert evidence on, as
the words say, the issue of vehicle injury damages?
Hon. D. Eby: Could the member just clarify that question? Is he asking what
reports other than doctors’? I didn’t quite follow his
question.
M. Lee: Yes. In effect, what other types of reports would there be, other
than medical reports from doctors?
Hon. D. Eby: The other types of expert reports that may be captured by this
limit of three include cost of future care reports, economist reports,
life planner reports, vocational care reports or occupational therapy
reports.
M. Lee: There is also reference to elements around causation here. That
is, parties must prove, in a negligent action, that there was causation.
Those experts who are retained to opine strictly on causation — are they
caught in any way within the limitations set out in this act?
Hon. D. Eby: It depends on the kind of causation the member is talking about.
If you’re talking about medical causation, that the injury that resulted
from the collision caused a certain outcome in the individual, then that
would be captured by the limit. But if the member is talking about
causation as in who caused the accident, who is liable for the damages,
then it would not.
M. Lee: The limitation on expert reports. The Attorney General did
acknowledge, in respect of ICBC, that there is no similar application of
this to limit the number of expert reports for recovery to
ICBC.
[2:10 p.m.]
I’d like to ask if the Attorney General has had any further
opportunity to consider that point and whether there is any view to be
looking at that further in terms of how these rules might also apply to
ICBC.
Hon. D. Eby: Yes, these rules do apply to ICBC.
M. Lee: In terms of that, when ICBC is the successful party, then they’ll
be able to recover their costs in any action. Is that
correct?
Hon. D. Eby: Up to the limits.
M. Lee: Is there any concern the Attorney General sees in respect of the
difference in financial position between a plaintiff and ICBC, in terms
of their ability to obtain expert reports but not need to recover the
costs of those expert reports — that ICBC is in a better financial
position to be doing that vis-à-vis any individual plaintiff?
Hon. D. Eby: It may be helpful for the member to have some background on the
issue of costs and disbursements, which is that they’re never intended
to provide full indemnification. Disbursements are always limited to
those that are necessarily or properly incurred in the course of
litigation and for a reasonable amount.
As the member knows, litigation typically has a cost, which is
significant, and some of which is never recovered by even the successful
party. The purpose of this is actually to encourage more proportionate
spending so parties will be fully indemnified or close to it in terms of
their compensation.
There are, certainly, some pieces that we put in to ensure that
people are protected in the transition period. In the regs, we will have
this. The court will have discretion to disapply the 5 percent cap where
a notice of trial was filed and served before February 6, 2020 for a
trial after October 1, 2020, but the party properly incurred
disbursements in excess of 5 percent before February 6, 2020.
Certain things will be excluded from the 5 percent cap as well.
This is what I assume the member is asking about. Such things are fees
payable to the Crown and sheriff, things like filing fees, court fees,
jury fees, disbursements where costs are assessed as special costs, and
disbursements for expert reports on liability where the court orders
that they be excluded from the 5 percent cap.
M. Lee: I appreciate the response from the Attorney General and certainly,
as I spoke to in my second reading speech yesterday as well, recognize
that under the existing rules, recovery of costs is subject to
reasonable and proper and appropriateness, and that determination is
made, certainly, under our existing rules.
The point that I was trying to get at, too, with the Attorney
General was really about the unlevel playing field concern in respect
of…. Even though the Attorney General has confirmed that the same limits
on recoverability apply to ICBC, ICBC is in a better financial position
in terms of the number of expert reports, the amount that it’s prepared
to pay for an expert report and the amount of disbursements that ICBC is
prepared to incur in respect of any action because of their financial
position, versus a plaintiff who now is being limited in their ability
in terms of the number of expert reports they can bring on and tender
during that action.
[2:15 p.m.]
The costs for each individual expert report would be limited to
$3,000, and their overall disbursements would be arbitrarily limited to
5 percent. Does the Attorney General see a concern around the unlevel
playing field that this bill presents to plaintiffs in British
Columbia?
Hon. D. Eby: Of course ICBC will exercise due diligence in expenses on files,
including expert report costs.
I want to point out to the member — we haven’t gotten to this
section yet — but of course ICBC and plaintiffs can explore the use of
joint experts that don’t have this limit on recoverable amounts. We’re
actually encouraging people, as the previous government did in family
law…. They limited experts and had court-appointed experts, two things
that the member railed against in his second reading speech — actually
done by the previous government in the family law venue.
In any event, I digress. This omission of joint experts from the
limit was deliberate. We want people to identify non-adversarial experts
to assist in valuing claims. So if the member is concerned about that
level playing field, certainly there are opportunities to have experts
outside of the limit on experts and the limit on recoverable amounts —
the number of expert reports and so on.
If the member wants me to defend the litigation system as a great
way for people to resolve their disputes with ICBC, I won’t do it. We
are transitioning to a new way of doing auto insurance in the province
precisely because of the problems with the current system.
I mean, for someone to have to borrow money from their lawyer for
a two-year litigation battle with ICBC, who is both supposed to be
providing care for that person and, at the same time, hiring the lawyer
for the person who hit them in the crash — to say, “Well, maybe it’s the
person who was injured; maybe it was their fault; maybe they were
driving badly; maybe they’re not as injured as they seem”…. That system
is not a good system.
We’re trying to address some of the excesses of the system as a
transition to a better way of doing insurance — providing peace of mind
to British Columbians, better benefits, lower costs and getting rid of
legal costs in the system.
I hope that goes some way to addressing the member’s concerns
about a level playing field. We have an unambiguous agenda here, which
is to discourage this adversarial experts system, where there are these
groups of plaintiff experts and this group of defence experts…. The
Globe and Mail did an excellent exposé on some of these
experts.
It’s incredibly problematic. I certainly hold ICBC as responsible
as the plaintiff bar for cultivating this network of experts on either
side.
We can address this as a province by encouraging people to retain
joint experts, an expert that both sides have confidence in to assess
claims. Those experts are exempt from the limitation on recoverable
amounts.
M. Lee: We will talk about the retroactive nature of this bill to come
when we get to that particular section. But to be clear, for the purpose
of this bill, the consideration ought to be for the outstanding lawsuits
that ICBC is involved with. Because those lawsuits are being affected by
the changes in rules on expert reports that this bill presents — just to
be clear about the impact of these restrictions and the unlevel playing
field concern that we’re talking about.
It may be one thing to talk about the bill that the Attorney
General introduced into the House yesterday for no-fault. That
discussion will come, but in this case, we are talking about this bill —
limiting expert reports in the manner that is set out in this
bill.
I’d ask the Attorney General if he could answer the question as
to: what is the estimated number of lawsuits that will be affected by
this bill?
[2:20 p.m.]
Hon. D. Eby: In terms of an exact number or even an approximate number, it’s
difficult to say. I think there are about 90,000 claims in the system
that predate today. There will be some more collisions between now and
the implementation of the new system on May 1 of next year. For all of
those files, they could potentially fall under these rules, with the
caveat that there are transition provisions within the bill. So some
will not be captured within this, and some will be.
In terms of the pool of potential files, it’s about 90,000 active
files right now, but all of those will not be captured in the same
way.
M. Lee: It’s the 90,000 files that, as the Attorney General acknowledged,
are being potentially affected depending on their status, depending on
their trial date, depending on whether they go to trial, how far they go
along this litigation process. There will be, certainly, other claims
that may well be affected to come. The nature of this is significant in
terms of the number of British Columbians that will be affected by this
rule change.
To come back to the question around unlevel playing field, we’re
talking, as well, about British Columbians that have, with legal
counsel, entered into litigation proceedings under the current rules and
have relied upon that system and now are having the rules change, which
will affect their ability to bring forward their full claim for full
recovery of damages relating to their motor vehicle
accidents.
That is the concern here. And that in the course of that, ICBC is
in a much better financial position. They have a lot more at stake here.
These dollars are meaningful, certainly for individuals, and they have a
lot at risk. They don’t have the financial ability to take that
risk.
Is there a concern…? When the Attorney General uses the word
“agenda” or “aim” or “objective,” is the objective of this bill to
encourage earlier settlements of those 90,000 lawsuits?
Hon. D. Eby: The vast majority of these claims, if history is any guide, will
settle before they go to court. Far in excess of 95 percent of them will
settle.
I want to clarify one of my earlier responses. I said that there
were about 90,000. I’m told there are actually 95,000 active injury
claims with ICBC; however, only 48,000 of those are actually in the
court system right now. Just a little bit more clarity. I got new
numbers from staff here.
I hope that assists the member with his understanding of the
bill.
M. Lee: I’d still look for a further response from the Attorney General in
respect of the concern around the different financial position under
these rules and the impact on injured British Columbians. Does the
Attorney General see that as being a concern — that we’re changing the
rules? Even if we’re talking, for discussion purposes here, 48,000
active lawsuits in court proceedings. Certainly, for those 48,000 court
proceedings, they have relied upon different rules. Now we’re changing
those rules.
Does the Attorney General see the concern that this is effectively
creating an unlevel playing field between those plaintiffs in those
48,000 lawsuits with ICBC?
Hon. D. Eby: I don’t acknowledge that. This bill is intended to encourage
plaintiffs and defendants in personal injury matters related to vehicle
collisions to retain joint experts and to move away from the adversarial
system.
[2:25 p.m.]
What I do acknowledge is that the system as a whole is not a good
one, in the sense that if you’re injured in a collision, the last thing
you need is a two-year court battle and to start borrowing money from
your lawyer at 10 percent to fund litigation through that two-year
period and then to give up a third of your award at the end to
contingency fee. It’s not good for drivers who pay their insurance and
pay for lawyers on both sides, expert reports on both sides, all of the
disbursements on both sides. It’s not a good system for administrative
efficiency or for peace of mind for British Columbians.
I won’t defend it, because we’re moving away from it, if that’s
what the member is wondering. But I will say that this bill that I put
forward has an objective. It has an intention and an agenda, which is to
move away from these adversarial experts. If you still want to use
adversarial experts, you can. You can use up to three. You can use more
on the issue of liability, and the maximum amount you can recover is
limited.
I do want to talk a little bit about what the member is calling
the retroactivity of the bill. The member will know, and in fact he
mentioned it in his question, that we had legislation limiting the
number of experts. I was very clear, held press conferences, media
events. I spoke to the bar. Our intention was to limit adversarial
experts in the system.
We introduced legislation. It was challenged in court. It was in
the news. When we lost, I announced that it was government’s intention
to go back and study the decision and find a way we could limit those
adversarial experts. The bill, no surprise to anybody, came forward
again.
Despite all of that press and all of that sky-writing that it was
government’s intention to limit adversarial experts and expenses related
to adversarial experts and to move people towards joint experts in civil
litigation, especially in automotive collisions, we still said: “Maybe,
before February 6, before we announced this latest bill, maybe you
didn’t know that we were going to do this.”
We said: “Before that date, maybe you didn’t know that new limits
were coming, and maybe you would’ve been conducting yourself according
to the old way of doing things. We also wanted to make sure, though,
that you didn’t have a big race down to the courthouse to get filed. So
the amendments refer to steps already taken by February 6.”
I want to give the member an example of a race to the courthouse.
When the minor injury cap on non-pecuniary losses was introduced, there
was a rush to file cases before the new limits applied. In one instance,
a single lawyer filed over 300 notices of civil claim in a single day.
As it happens, they didn’t avoid the new limits, but it created a lot of
work for registry staff.
Our data on filings shows two significant spikes in claim filings
— one in January of 2018, which was around the date of the product
reform announcements, and another in March 2019, which was when the
minor injury caps took effect. In both cases, the data showed filings
were twice as high as normal monthly volumes.
The member, I’m sure, can appreciate why we would require steps to
be taken by February 6, but I think the member can also understand that
people might have had a notion that government would be introducing
legislation this session to, again, attempt to rein in this practice of
the use of adversarial experts in personal injury litigation.
M. Lee: I appreciate that we’ll have an opportunity to more thoroughly
canvass the concerns around retroactivity and what British Columbians
are reasonably expected to do.
I’m not sure that British Columbians, in the face of the decision
on October 24, 2019, would have thought: “Well, this rule 11-8, the rule
on the constitution, was thrown out by the Chief Justice of the Supreme
Court of British Columbia.” I’m not sure they would have said: “Oh,
well, you know, despite what the government says, it’s going to come
forward still.” I don’t know that the writing in the sky or the notion
that that might occur is something that we’re asking British Columbians
to rely on. It’s also the reason why this bill is in front of this
House.
I don’t think we expect British Columbians to conduct their
affairs based on press releases, based on what is said, because
sometimes, as we know, what is said is not actually what is
done.
I want to come back, though, to the other agenda here that the
Attorney General has been speaking to, which is around joint
experts.
[2:30 p.m.]
I appreciate that, certainly, in areas of family law and other
areas, we continue to find ways to bring about better ways to resolve
disputes, particularly in the family law context. But we are still, for
those 48,000 lawsuits — and potentially others, to get to the 95,000 —
under the current rules.
I’ll just ask this question because we’re having this discussion,
so just to keep that in mind. In terms of joint experts, what is the
understanding of the Ministry of Attorney General in terms of the use of
joint experts in motor vehicle claims and lawsuits?
Hon. D. Eby: Just briefly to the member’s lead-in to the question. We don’t
expect members of the public to conduct themselves according to any kind
of press release or anything else government does. That’s why we accept
past loss, and that’s why we set out February 6 as the date.
I was just saying to the member that this didn’t come out of
nowhere. It shouldn’t have been a huge surprise to anyone. We
telegraphed this in several different ways. Despite all of that
telegraphing of our intention to do this, the date is still February
[S. Gibson in the chair.]
Now, with respect to the member’s question — what is our
understanding of joint experts in personal injury claims related to
automotive collisions? I don’t know what that means.
M. Lee: Just to rephrase the question for a better understanding: what is
the use…? How frequently are joint expert reports utilized in motor
vehicle injury claims and lawsuits?
Hon. D. Eby: The rules do currently allow joint experts in all litigation.
However, there is no incentive to use joint experts, and our
understanding is they are used very infrequently. However, we do not
have statistics about exactly how many files use joint experts. I would
guess that it would be a very, very low number indeed. What we’re
attempting to do with this bill is to incent and encourage the use of
joint experts.
M. Lee: Well, that is my understanding as well, that today, under the
current system and the rules, there is a very low or infrequent use of
joint experts. I think it is, at least for this discussion, helpful to
understand the true objective and agenda as the purpose — at least one
of the purposes — of this bill. It would leave situations where, when
you’re limited on cost recovery, on the number of expert reports that
you can receive recovery for, and then the dollar figure…. As the
Attorney General has indicated, that limit doesn’t apply to joint
experts.
Can I ask the Attorney General, though: in the context of a motor
vehicle injury lawsuit, what are the challenges that the Attorney
General has seen or understands to be the case with the use of joint
expert reports?
Hon. D. Eby: The challenge has been that there’s no incentive to use joint
experts, and therefore, people don’t use them. This results in the
cultivating of and expansion of a network of plaintiff experts and a
network of defense experts, which, to my opinion, are of limited
assistance to a judge.
[2:35 p.m.]
To have one expert come up and say “black” and the other expert
come up and say “white” — what is the benefit that either the court or
the participants get from that? If you have an expert that both parties
agree is somebody who is expert in the field and is jointly retained to
provide an opinion, there’s great assistance in that — in fact, so much
assistance that it may set settle the claim.
The issue is the significant and growing expenditure on
adversarial experts by both sides — delayed justice, inefficient
process, unresolved and unsettled disputes that should be settled. There
are many costs associated with the failure to use joint experts. There
are costs associated with a lack of proportionality, as well, between
the use of experts and the actual value of the claim.
M. Lee: There are a number of points that we could pick up in the Attorney
General’s response. But just on the last one. When it is the concern of
the Attorney General that there are a number of costs that are incurred
that get away from proportionality, how does the Attorney General see
that concern being dealt with differently from what’s already set out
under rule 1-3 of the Supreme Court civil rules?
Hon. D. Eby: The new bill provides an incentive to use a joint
expert.
M. Lee: Well, I’ll only say that proportionality is dealt squarely within
rule 1-3(2) of proportionality. That states: “Securing the just, speedy
and inexpensive determination of a proceeding on its merits includes, so
far as is practicable, conducting the proceeding in ways that are
proportionate to (
a) the amount involved in the proceeding, (
b) the
importance of the issues in dispute, and (
c) the complexity of the
proceeding.”
This is in context or in relationship to the object of the rules
themselves, which is to secure the just, speedy and inexpensive
determination of a proceeding on its merits.
Again, I ask the Attorney General, when he talks about
proportionality and the importance of that, why isn’t that already dealt
with fundamentally front and centre within the Supreme Court civil
rules? What is lacking in rule 1-3?
Hon. D. Eby: I agree with the member. I mean, the object of the rules is the
same as the object of this bill. Our objective here is to be, so far as
practicable, conducting the proceeding in ways that are proportionate to
the amount involved, the importance of the issues and the complexity of
the proceeding. That is exactly the intent behind this bill. So it
shares an intent with the rules.
The rules themselves are silent on any kind of limit on the number
of expert reports, and motor vehicle collisions do not, as I say,
provide an incentive to use those joint experts. So this is a complement
to the objective of the rules.
M. Lee: Well, I know that we will come back to the Supreme Court civil
rules and how the current system works. But I did want to at least
address proportionality, and I believe the Attorney General has
acknowledged that framework.
Turning back to joint experts, I hear, in the Attorney General’s
response to my questions, that there are certainly cost concerns, and
the Attorney General speaks to the need for providing an incentive.
Well, that is a different way of turning this bill, in terms of how it’s
being presented.
[2:40 p.m.]
It’s providing an incentive by penalizing, limiting, constraining
plaintiffs for utilization of expert reports, both in terms of number
and cost and in recovery of disbursements. That is certainly a stick
methodology; it’s certainly not a carrot. It is forcing plaintiffs to do
something that I don’t hear from the Attorney General, which I would ask
in a moment. I hear this is all being driven by cost
concerns.
Are there any other reasons for which the Attorney General, by
presenting this bill, is seeking to provide the incentive — in his words
— to plaintiffs for using joint experts? Is there any other reason
besides cost?
Hon. D. Eby: I would add to the issue of costs — and, frankly, costs on both
plaintiff and defence sides when experts and adversarial experts are
abused in the system — the reputation of the justice system as a
concern. I don’t think it does the justice system any favours — and ICBC
wears this one — to have an expert whose office is above an airplane
hangar, who doesn’t see the person involved in the litigation before
issuing an expert report about their medical condition.
Then it shows up in the Globe and Mail . I don’t think
people read that and think: “Gosh, the justice system sure seems to be
working well.” I think they read that, and they say: “What the heck is
going on down there?” So I would say that one of the benefits of
encouraging people to use joint experts, experts that are respected by
both sides as being expert, in the process — getting that opinion and
making a decision about whether or not to go to court based on that — is
that of a lot of people saying: “Yeah, I think that’s the way the
justice system should work.”
If there’s a legal issue to be determined, the judge is now in
place to do that, with an expert opinion that is relied on by both
parties. I think that we can’t take too lightly the concern of the
public around the cost of going to court. When they see a lawyer’s bill
where, of $248,000 paid out by the insurer, 70 percent of that goes to
administration costs, 30 percent goes to the plaintiff and $84,000 of
that goes to expert reports, they say: “What the heck is going on down
there?”
I think that public confidence in how the system works is a really
important value, and this bill responds to that. It says: “Here, we’ve
got this problem.” It’s not a problem that I made up; it’s not a problem
that someone else made up. This has been a problem that was widely
discussed in the legal world for many years.
From a civil rules review committee, established by the previous
government, one of their key recommendations was: “Address the abuse of
adversarial witnesses.” It’s one of their key recommendations — totally
unacted on, in my opinion, by the previous administration, despite the
fact they had assembled this civil rules working group to advise on how
the civil rules should be reformed. So it’s a widely recognized concern,
a concern that’s raising public concerns about the administration of
justice, a concern that is corroding public confidence in the
administration of justice.
It’s a bill that attempts to address that, as other jurisdictions
across Canada and other Commonwealth jurisdictions have, in ways that
are both more lenient and far more significantly constraining than
what’s proposed here. Just look at the U.K. rules or the Australia rules
around resolving automobile tort claims, and you’ll see that we fall
somewhere in the middle — in fact, much closer to the lenient
side.
The member…. I hear in his tone, you know: “How dare…? Costs? Just
costs? Really?” But costs have this impact on public confidence in the
justice system, how it’s working, how efficient it is, who has access to
court, who doesn’t. It’s important to address those issues.
[2:45 p.m.]
M. Lee: Well, there’s a lot to address, certainly, in the comments from
the Attorney General. Just focusing on joint expert reports, I’m still
not hearing the considerations around how they actually function under
our current system. I understand that there is encouragement — incentive
— to utilize joint expert reports, but as the Attorney General
acknowledged, they’re very seldom used in our current system. Again,
there is consideration around why that is.
When we look at considerations around the adversarial system,
expert reports are being provided by the plaintiff to support their
case. The unlevel playing field that we’re talking about, which is
backed by ICBC on the other side of this, would not see joint expert
reports being utilized. It’s because there is an imbalance of power
there; there’s an imbalance of resources. This bill is merely feeding
that imbalance. It’s forcing plaintiffs to utilize a mechanism that
hasn’t been utilized in the past, and there are reasons for
it.
There is what Chief Justice Hinkson referred to in his decision
around concerns for litigation privilege. The use of expert reports on a
joint basis would have concerns raised, in a similar manner, that you’re
unfairly requiring and incenting plaintiffs to have to put forward their
case in a manner that is prejudicial to their own interests. Does the
Attorney General see any concern relating to the forcing of joint
experts on plaintiffs under this bill in respect of the ability of that
plaintiff to bring on their case in a way that still preserves
litigation privilege?
Hon. D. Eby: I’ll just remind the member that litigation privilege is not
absolute. There are restrictions on it. If you want to use an expert
report at a trial, you have to deliver it 84 days before trial. The
court can order the disclosure of names of witnesses and summaries of
their evidence. If you do want to maintain litigation privilege forever,
you can do it by not tendering expert evidence at trial and just using
it in preparation. But if you want to use it in trial, then there are
limitations on that privilege.
I want to point out as well that we’ve had ten years now of joint
experts in the family law field. They’re working well. The
administration of justice is the better for it. We’re hopeful that joint
experts can have a similar salutary effect in the litigation world as
well.
M. Lee: Well, I appreciate, in terms of the response, at least the
acknowledgment of the concern regarding litigation privilege. Having
said that, it still is fundamental, in terms of the incentive that’s
being set out here in this bill, that it effectively will force
plaintiffs to be limited in the way that they can access expert reports
and in that being not a viable option. If I can ask about the movement
here, in terms of looking at expert reports themselves….
[2:50 p.m.]
There is a subcondition in subsection (6) which requires that “the
subject matter of the additional evidence…is not already addressed by
expert evidence permitted under subsection (2) or (4).” If there is a
joint expert under subsection (3) that covers a particular subject
matter, does that preclude the ability to introduce additional expert
evidence?
Hon. D. Eby: I think this may be responsive to the member’s question. Joint
experts are exempt from all of this. I’m not 100 percent sure, but I
think that is responsive.
M. Lee: Thank you for that response. In terms of the condition under sub
(6)(a), the condition I’m referring to, it refers to subject matters
already addressed by experts, without specifying whose experts. Giving
an example here, if the first party has an expert that covers the
subject matter of, say, headaches or head injury, but the other party
wishes to obtain an expert that also covers that same head injury, does
this provision in sub (6) prevent the second party from retaining their
own opposing expert?
Hon. D. Eby: The subsection refers specifically to (2) or (4). Joint experts
are (3), and they are excluded from this provision. It’s only (2) and
(4), not (3).
M. Lee: I appreciate the answer and the previous answer that was given
relating to joint experts. I’m referring at this point to any
expert.
Hon. D. Eby: Okay. If a plaintiff brings a headache expert, the defence can
also bring a headache expert to respond, but it would count as one of
their three expert reports.
M. Lee: Sub (6) relates, of course, to sub (5), which is the application
which a party to a vehicle injury proceeding may make to the court. If
the court is satisfied, then the court can grant leave to allow, in
effect, additional expert reports to be tendered and
obtained.
When we talk about sub (6)(a), the condition for which that
application can be made and court can grant leave is conditional upon
sub (6)(a), which is “the subject matter of the additional evidence to
be tendered is not already addressed by expert evidence permitted under
subsection (2) or (4).”
[2:55 p.m.]
Again, I’m just querying, as the Attorney General just raised…. If
there is one party, say the plaintiff, who has tendered a report — or
has a report, as part of his or her three — on head injury and headaches
arising from that head injury, and the defence would like to have an
additional report on the same subject matter as per the language of sub
6(a), does that preclude the court from granting leave for that
additional expert report, pursuant to sub (5)?
Hon. D. Eby: I think that we’ve narrowed it down, and hopefully I can be
responsive to the member’s question. Subsection (6) refers to your own
evidence — so the same party evidence. It doesn’t refer to if the other
party has done something. I’m hopeful that that clarifies things for the
member.
M. Lee: So as we look back at the provision under sub (2)(c), it’s worded
that the party must not allow a party “to tender expert evidence at the
trial of a vehicle injury proceeding if doing so would result in
exceeding the limits set out in this subsection.” So sub 12.1(2). When
we set that out, how does that affect what follows in sub (4)? That
doesn’t have any exclusion from the language as do other sections, in
terms of reference back to sub 2(c).
Hon. D. Eby: At the very beginning of sub 12.1(2), it says: “Except as provided
under this
section or the regulations.” So it sets out the general rule.
The general rule is that you’re limited to this number of experts: in
this kind of proceeding, you’re limited to this number expert reports on
this type of proceeding, and the court shouldn’t allow any more. That’s
the general rule.
Then the exceptions come: “Except as provided under this
section
or the regulations.” These are the exceptions. The exceptions start with
subsection (3), which relates to a joint expert, and subsection (4):
“With the consent of all other parties” to the proceedings. If you get
everybody else’s sign-off, you can add additional experts above and
beyond the limit. So (3) is one exception, an exception for joint
experts, and (4) is another exception, an exception for agreement of all
parties.
M. Lee: In terms of sub (4), that is another avenue for which, with
consent, a party may tender additional expert reports that are not
subject to the limits. Under this current system, if I could ask the
Attorney General, how often is the mechanism, for which consent is
provided by both parties for expert reports, in a similar way as to what
this is set out?
[3:00 p.m.]
Hon. D. Eby: Under the current system, you can call as many experts as you
want, so there’s no need for consent. In terms of the proposed change
here, consent typically would be arranged by counsel before the trial,
and there would be cost consequences for failing to consent to a
reasonable request from counsel on the other side. Typically it’s done
in writing, and if the court asks, you just stand up in court and say:
“Yeah, we’ve consented to this extra expert evidence.”
I hope that addresses the member’s question.
M. Lee: Recognizing and acknowledging that there is no need for consent to
be obtained under the current rules because there’s a limit on expert
reports, under this bill, what is the expectation that the Attorney
General would have as to how this consent process will work between the
two parties?
Hon. D. Eby: Just like any other consent process between parties to litigation,
it would be speaking in advance of any trial about trying to resolve
issues and so on. There would be a request, I assume, by one party to
add additional expert evidence with an explanation of why it’s needed.
Consent would either be given or it would not be given by the other
party, noting that unreasonably refusing would potentially lead to cost
consequences.
M. Lee: Again, in terms of how this might be utilized, are there any
concerns that the Attorney General sees as to the position this puts the
plaintiff party in, in terms of this mechanism, in having to enter into
discussions with the other party as to the nature of their claim and the
theory of their claim and the strategy that they’re going to bring
forward? Would this effectively lead to prematurely prejudicing the case
of the plaintiff him- or herself?
Hon. D. Eby: The safeguard is in this same section. It’s subsection (5). If one
party — and this rule applies equally to both parties — unreasonably
refuses consent, the party who received that refusal would apply to
court. The court would consider whether there’s a reason to allow the
additional expert evidence and then would order that it be allowed or
not.
M. Lee: I’m just trying to break down the various avenues for which
plaintiffs can seek to recover their full damages here. We’ve talked
about the use of joint experts and the incentive that this bill, from
the Attorney General’s point of view, will create. We will get to the
court-ordered process under sub (5) and sub (6) and sub (7) in terms of
the nature of that application to the court.
Just coming back to consent again, though, is there a concern as
to how workable, in the nature of these current proceedings, the
outstanding claims that are in front of various courts in this province
— that we’re providing for a mechanism here under sub (4) that really is
not all that workable for plaintiffs?
Does the Attorney General see that as being a viable avenue to
obtain consent where the plaintiff, for reasons that I gave, would have
concerns about putting themselves in a position where their own case
would be prejudiced by having to go through that consent
process?
[3:05 p.m.]
Hon. D. Eby: The member is going to have to be more specific about what the
issue is here. The way consent works is that you ask the other party:
“Do you consent to this departure from the rule?” They say: “No.” You
bring your application in court. It happens all the time on countless
different issues.
He’ll have to be more specific about the concerns. Again, I don’t
know what he’s talking about.
M. Lee: In order for parties to utilize this consent process, there will
need to be a level of interaction request being made, as the Attorney
General sets out. And to engage in that, at any process, particularly as
the claim approaches the trial, that forces the plaintiff to have to go
through revealing and indicating to the other side parts of their action
and the theory of what they’re presenting to the courts.
I’m only pointing out that this avenue that’s been provided in
this bill is very unlikely to be utilized because it’s not that workable
for plaintiffs. I’m asking the Attorney General if he sees that same
concern.
Hon. D. Eby: I’m trying to put together the vision of the justice system that
the member has in terms of civil litigation. There is not trial by
ambush in British Columbia. This isn’t a criminal proceeding where the
defence is keeping everything close, only to test on cross-examination
the Crown’s witnesses.
Expert reports are fact-finding reports about what happened — or,
in this case, about the injuries that a person has. It’s alien to the
idea of resolving a dispute that you’re keeping your injuries secret,
that you don’t want to tell the other side what your injuries are. The
goal is resolution of the claim. How injured are you? How can a fair
settlement offer be made if nobody knows how injured you are, and you
want to keep it secret?
I don’t understand why that’s a negative thing — that someone who
is injured, who has a claim, who is advancing that claim through the
court system and wants it, I can only assume, resolved as quickly,
inexpensively and efficiently as possible would want to keep their
injuries secret. In fact, that value is recognized in the rules in terms
of when expert reports need to be disclosed, as when we went through and
discussed litigation privilege.
You have to give it 84 days in advance. So at least the other side
knows, you know, what is the nature of the injuries. There’s a very live
question about whether that’s enough time. I think it needs to be
significantly more time.
The issue here that I’m trying to understand that the member
believes plaintiffs will have — as I understand it from him, and he’s
going to have to correct me — is that his concern is that someone will
have to reveal that they wish to put forward a report that shows how
injured they are and that they would have to somehow disclose some
aspect of that in an application to allow that report to be used — that
his preference and his thought would be that that should be held, I
guess, until trial.
That’s not what this is. That’s not how the rules are supposed to
work. That’s not just speedy and expensive resolution at the earliest
opportunity. That’s just a different system that he’s
recommending.
M. Lee: Well, you know, I think that we’re just having a discussion as to
how these new rules are going to integrate with the existing rules. I
certainly recognize the existing rule around the 84-day disclosure
before trial. And we’ve talked about litigation privilege, which this
Attorney General doesn’t seem to be as concerned about in the nature of
these proceedings. But that’s certainly something that Chief Justice
Hinkson had talked about in his decision as well.
If we look at the requirement under subsection (7), if I can ask
the Attorney General: what are the indications of the kinds of
information that are being required to be included in their application
for the purpose of sub (7)?
[3:10 p.m.]
Hon. D. Eby: In any application, subsection (7) lists out that a party must
include the following: “(
a) the name of each expert whose evidence the
party intends to tender at trial; (
b) the scope of expertise of each
expert whose evidence the party intends to tender at trial; (
c) records
that support the need for additional evidence.”
M. Lee: In stating what is set out in sub (7), if we look at sub (7)(c),
what kinds of records would be necessary to support the need for the
additional evidence?
Hon. D. Eby: Examples could include medical reports or employment
records.
M. Lee: Sorry. Could the Attorney General repeat his answer?
Hon. D. Eby: Examples could include medical reports or employment
records.
M. Lee: In terms of the need for medical reports, what kinds of medical
reports would be included in this application?
Hon. D. Eby: I can see that it would be very easy to conflate a couple of
different types of medical reports. We’re not talking about expert
reports here from a doctor. We’re talking about, for example, a family
doctor’s medical records that they would be keeping in the family
practice in the course of regular administering to the patient — as an
example of a medical record that I was giving as an example of records
that support the need for the additional evidence.
M. Lee: Just to understand this, the purpose for which a family doctor’s
medical report would be included in the records, as necessary, to
support the need for additional evidence by way of experts…. Why would
that be necessary in the sense that, presumably, the nature of the
expert report that’s being requested would demonstrate a particular
medical injury or a physical injury or the like? Why is there a need to
have a duplication here?
Hon. D. Eby: There is a need to establish the evidentiary basis for the
application in order for a judge to make a finding. I’ll just remind the
member that, of course, in civil litigation, you’re under an ongoing
disclosure obligation — both sides are — of relevant records to the
claim.
M. Lee: When the Attorney General refers to that ongoing disclosure
obligation, why is there a need, then, to include these records as part
of the application if they’re already being disclosed?
Hon. D. Eby: There may be literally thousands of records that flow both ways in
civil litigation. What you want to do is you want to attach the relevant
records to an affidavit that supports your application so that the judge
has the evidentiary basis for the application handy, and then, in
chambers, you go through your argument. You draw the judge’s attention
to the evidence that supports the basis of your application. It’s like
any chambers application.
[3:15 p.m.]
I know the member is counsel as well and is familiar with that
process. This is no different.
M. Lee: In terms of the other types of records that would be included, the
Attorney General mentioned employment records. How is that relevant to a
medical expert report?
Hon. D. Eby: We’ll go down a hypothetical road here and say, well, if the
person needs accommodations in order to be able to work and their
records from the workplace reflect those accommodations that needed to
be made, or if the person’s unable to work, or if the person was
terminated from their job because of injuries related to the accident….
There are any number of potential hypothetical records and why records
from work might be relevant to a personal injury matter related to a car
crash.
M. Lee: With this scope of information, certainly under sub (c), we get a
sense from the Attorney General as to the nature of the kind of
information that will be necessary to be included in the application. If
I could ask, though, in terms of sub (7)(b), when we talk about the
scope of expertise for each expert, the purpose for requiring that
information is what?
Hon. D. Eby: In order to apply the test in subsections (5) and (6), the court
needs to understand why the person who is proposed to provide the expert
report would provide relevant additional information that’s necessary to
assist in the determination of the claim and satisfy 6(b), which is:
“without the additional expert evidence, the party making the
application would suffer prejudice disproportionate to the benefit of
not increasing the complexity and cost of the proceeding.”
Without the information in sub (b), it’s very difficult to know
what this additional expert’s report will bring to the court, and it
makes it very difficult for the court to know whether it would satisfy
the test to justify the additional expert report.
M. Lee: In terms of looking at sub (6)(b), there is a test that is
required here that the party making the application would suffer
prejudice disproportionate to the benefit of not increasing the
complexity and costs of the proceeding. Is this a new test?
Hon. D. Eby: There are a number of influences on this section, including the
federal court rules, but to my knowledge — and I’d say don’t quote me,
but Hansard , of course, is going to quote me — I think that
this is not a test that is elsewhere in the rules in British Columbia,
if that’s what the member is asking.
[3:20 p.m.]
The value and the judgment that we are asking the court to apply
here is one that is very inherent to the court system and the rules in
British Columbia, which is the value of proportionality. It’s a test
that the courts apply regularly throughout chambers applications in
consideration of rule 1-3, I think, that we talked about in some detail
before. So the value and the type of test is certainly not unique, but
the particular wording may be.
M. Lee: The determination of proportionality, though, certainly is a
determination that is considered under rule 1-3, as we talked about.
When is that proportionality…? Under the current rules, when is that
determination made?
Hon. D. Eby: So this is a value the rules say the court is supposed to apply.
Every time the parties take a step or in any applications that are made,
this is a value that the court is supposed to keep front of mind — the
just, speedy and inexpensive, proportionate resolution of
disputes.
This particular test, obviously, the court would apply in
determining whether or not a party should be allowed to bring expert
reports in excess of the rule.
The Chair: Hon. Members, we’ll take a recess and return
momentarily.
The committee recessed from 3:22 p.m. to 3:33 p.m.
[S. Chandra Herbert in the chair.]
M. Lee: We were talking, just before the break, about proportionality.
From what I understand from the Attorney General’s response, he referred
back to the usage of proportionality in subsection (6). I was asking for
the Attorney General’s response on, under the current rules, when
proportionality for costs would be taken into account. When is the
appropriate juncture in any proceeding for that to take
place?
[3:35 p.m.]
Hon. D. Eby: The rules contemplate that the court should have that front of
mind throughout the entire process, every time the parties make a step
at case management conferences and so on. That is my answer to that
question.
I do want to clarify. We had some discussion over the break about
the member’s question related to 12.1 subsection (6)(a). The drafter was
watching on television and had a better sense of the member’s question
than we did here.
I wanted to clarify just so that everyone is very clear. The
intention of sub (6)(
a) is that the
section should be read as “addressed
by expert evidence….” I said this in my answer, but I just want to be
extremely clear about it — that the party making the application is not
already addressed by expert evidence that was tendered by the party
that’s making the application.
Now, we’re going to clarify that in the regulations but just to be
really clear. The drafter reread it and thought: “You know what? We can
clarify that more in the regulations.” You certainly could read it the
way the member read it, which is that if the other party had introduced
evidence on that point, you would somehow be blocked from doing that or
having the court consider that. That is not what is intended by this
section.
M. Lee: I appreciate that watchful eye by other staff of the ministry and
the need to add clarity, of course, to this particular amendment act.
That’s helpful to have that response.
Just going back, though, to subsection 6(b). In terms of
determining whether the party making the application would suffer
prejudice, what is the expectation of the court’s decision-making in
order for a judge to formulate and meet the requirement under sub 6(b),
in terms of formulating an evaluation as to whether the party would
suffer prejudice disproportionate to the benefit of not increasing the
complexity and the cost of the proceeding? What is the expectation the
Attorney General would have as to the nature of the decision that that
particular court would have to make?
Hon. D. Eby: The test is set out completely in 12.1 sub (6). So on the one
hand, the court has to consider any prejudice that would be suffered by
the party making the application if they were not allowed to tender that
expert evidence, and they would have to consider how that weighs
compared to the benefit of not increasing the complexity and cost of the
proceeding.
These are two separate values of our justice system, and so the
court is required to weigh those two in this test.
M. Lee: In weighing the prejudice to the applicant against the benefit of
not increasing complexity and cost of the proceeding, presumably the
court will need to make some preliminary assessment as to the nature of
the proceedings in front of the court.
Is there not a concern the Attorney General sees with requiring
the court to make an earlier predetermination of the judge’s view as to
how a potential additional expert report would meet or support the case
of a particular party?
[3:40 p.m.]
Hon. D. Eby: This goes back to our discussion earlier. It’s not intended by our
civil litigation system that the parties are going to trial blind to
what the issues are or who the witnesses are going to be or this kind of
thing. It’s not trial by ambush.
The court already does this in a number of different ways. They
determine how many days are needed for trial. They have witness lists.
There is disclosure in order to ensure that the parties know what
they’re going into trial on, because there’s a hope, in many cases, that
the matter will settle.
I don’t share…. I don’t know if the member has concerns; he’s
asking the question. I don’t have any concerns about that
issue.
M. Lee: Well, if we look at some of the concerns that were addressed by
Chief Justice Hinkson in his decision in Crowder, there was particular
emphasis on considerations around other decisions of the court. At one
point in his decision, he referred to the Mian decision, in 2014, of the
Supreme Court of Canada and Mr. Justice Rothstein’s view in that
decision.
Just to, for the purpose of this discussion, read it into the
record:
“Our adversarial system of determining disputes is a procedural
system ‘involving active and unhindered parties contesting with each
other to put forth a case before an independent decision-maker’…. An
important component of this system is the principle of party
presentation, under which courts ‘rely on the parties to frame the
issues for a decision and assign to courts the role of neutral arbiter
of matters the parties present.’”
If I just pause there for a moment, it clearly indicates that it’s
the role of the parties to present their case and that it is put before
the independent decision-maker, being the court. The court’s role is to
be the neutral arbiter of the matter being presented before the
court.
Again, coming back to this provision in section (6), it’s asking
the court to make a determination before the parties have completed
presenting both the plaintiff side and the defence side of the case. And
it’s putting the court and asking the court to make a decision which is
predetermining the outcome of what is put in front of the court, prior
to conclusion of both cases being presented.
The concern that I’m raising is that section (6) is having the
effect of going to a concern that was raised in the Crowder decision as
to an aspect, this mechanism, as being inconsistent with what has been
seen to be the ways in which legal disputes in Canada are litigated. So
that is the concern. Does the Attorney General not see that concern with
section (6)?
Hon. D. Eby: No. The quote that the member read out was in relation to the
chief’s comments related to court-appointed experts and the chief’s
reluctance to have the court participate in court-appointed experts
because, in his writing of the judgment, he felt that that put the court
in a position of more of a participant in the process than, as the
member outlined, the neutral arbiter.
This is not in relation to court-appointed experts. This test
addresses the concern raised by the chief justice in the Crowder
decision that the court needed discretion. The three-expert limit in
rule 11-8 was deemed unconstitutional, because it did not allow the
court to appoint more than three experts. I believe that 12.1, by giving
the court discretion and outlining what factors we would like the court
to consider in exercising that discretion, responds entirely to the
chief’s concerns.
[3:45 p.m.]
M. Lee: Well, the paragraph that I read out into the record is still a
good
summary of the adversarial system in Canada and the roles of each
of the parties and the role of the court.
The comment that was made by Chief Justice Hinkson that follows, I
believe, is still applicable to the concerns that one could raise, that
I’m raising, in respect of sub (6). That is the concern, as the chief
justice said, that “unless and until the evidence that the parties have
chosen to lead has been adduced, the court has no way of determining
what further evidence might be needed and no way of obtaining that
advice if it is thought to be required.”
The point being that sub (6) is asking the court to determine and
weigh what further evidence might be required before both parties have
presented their full submissions. That’s what this sub (6) is
doing.
The question that can be raised is…. It is again having the court
formulate an improper, inappropriate predetermination of the result,
preforming judgments on the nature of the case, what’s being presented,
the theories of both sides, before each side has had the opportunity to
fully present their case. That’s the concern that I can see with sub
(6) — that it is having courts having to play that role in order to meet
that test.
Again, does the Attorney General not see the concern with respect
of having to force courts to make an early predetermination in terms of
their judgment on this case, on a particular case in front of
them?
Hon. D. Eby: I have total confidence in our courts to be able to do this. They
do this all the time. I gave the member examples of where courts do
this, other examples of whether it should be a jury trial or not,
another example of whether it should be a
summary trial or not, another
example of whether the defendant should get an independent medical
examination or a party should get an independent medical
examination.
There are a number of examples where courts need to make these
determinations in the lead-up to a trial. There are many examples of
chambers applications where different issues are canvassed in front of
the court. This will be another one.
M. Lee: Well, I think this, of course, in respect to the kinds of
procedural matters that the Attorney General gave in response, is a
substantive measure. It goes right to the heart of the dispute in front
of the court when we’re talking about recovery of damages. So the nature
of the claim and what is being sought is what the medical expert report
is presumably going to go to. This is different from the types of
examples that the Attorney General gave.
Does the Attorney General not see that difference?
Hon. D. Eby: I do see that those are different tests, yes.
M. Lee: Well, certainly, in respect of being different considerations that
the nature of the decision that’s being required here by the courts is
far more substantive in nature and goes again to the judgment that a
court is being asked to make.
[3:50 p.m.]
Again, that’s the concern as to this application and the way it is
set out in subsections (5), (6) and (7) of this particular
section of
the bill — that that will, again, force courts to make that earlier
predetermination. I believe that that will still be a challenge in terms
of this bill, one that may well be questioned as to how it is in terms
of the exercise of that discretion.
If I can ask the Attorney General, though, in terms of the nature
of what is set out here providing judicial discretion, how is it that
the Attorney General sees it being appropriate to put parameters around
the court’s exercise of discretion? This parameter is not set out in
other jurisdictions, so why is it appropriate in this
jurisdiction?
Hon. D. Eby: It seems the member misunderstood my answer to the last question.
They’re different tests, but there are some similarities. For example,
whether a defendant gets an independent medical exam of the plaintiff
has very similar considerations, very similar deliberations that a court
has to make. Whether or not a jury notice is struck, you have to go and
show the court that the issues at play are far too complex for a jury to
consider, which is a combination of evidence and law.
These are comprehensive presentations to the court about the
issues at play in the litigation, the appropriateness of certain steps
in litigation and how litigation should be structured, that need to be
determined as preliminary matters.
Now, the member is concerned that we’ve set out a specific test
for the court to consider. The discretion was really set up in a way to
ensure the court has enough flexibility while ensuring that the
principle of proportionality is front and centre. We’ve really been
canvassing this ground — of the importance of proportionality for public
confidence in the justice system, for access to justice — for a whole
bunch of reasons.
The member may know, or may not know, that the expert limits in
other jurisdictions apply to all civil litigation and, in some
jurisdictions, to all criminal proceedings as well. So it’s certainly
reasonable for a court to have broader discretion in those broader
circumstances, but in B.C. at this point, this is only limiting expert
evidence on damages in motor vehicle injury cases, which is a subset of
experts in a subset of litigation.
It’s important to recognize that, as I said, there was a civil
rules working group that identified this issue around the abuse of
adversarial experts and how it was causing problems in the system. There
were reforms to the civil rules that came into force in 2010. Some of
those reforms were intended to reduce complexity and delay. We’ve heard
that the reform-oriented tools and processes introduced by those rules
were not always used to their fullest extent in the litigation process.
An example — we canvassed one of them — is joint experts.
We’ve chosen language that’s focused on the overarching principle
that animates the rules: namely, proportionality — just, efficient
resolution of disputes. I hope that helps the member understand why we
think that it’s important to underline proportionality as the value that
we want the court to consider while giving the court the flexibility
asked for in Crowder to, when justice requires, allow additional expert
witnesses.
M. Lee: I appreciate the Attorney General’s response in terms of the other
jurisdictions and the broader discretion that is appropriate, given the
nature of what expert rules there are in other jurisdictions. But here
in British Columbia, given the focus of this bill on motor vehicle
accidents and personal injury, in effect, there is still the same
concern, though, about the way that this discretion of the courts is
limited.
[3:55 p.m.]
Certainly, in terms of what was looked at under Crowder, in terms
of rule 11-8, this is intended, as we hear from the Attorney General, to
address the concerns raised in that decision by Chief Justice Hinkson.
What we are presented with, though, is still a much more limited
discretion by the courts. Recognizing and acknowledging the focus of
this bill, it is still a narrow discretion that is being asked by the
courts.
I don’t see any optionality here in terms of what the courts may
consider. Sub (6) says: “The following are the conditions for the
purposes of subsection (5).” Sub (5), in the lead-in, is permissive: the
court may grant leave if it is satisfied that the conditions set out in
sub (6) are met. In order for additional expert reports to be granted
leave for by the court, this test in sub (6)(
b) must be met. Again, for
the concerns I raised earlier about this being an earlier
predetermination of the result prior to the cases being fully presented,
this still is a restriction and a narrowing on the discretion of the
courts.
That is the concern that can be seen with this particular
subsection 6(b). So again I would ask the Attorney General: in terms of
the nature of this test that’s being utilized in sub (b), were there
alternatives considered, then, recognizing that it was the intention by
the Attorney General and the ministry to put some sort of limit on the
discretion? Were there other alternatives that were considered to
provide conditions that the courts must meet in order to grant
leave?
Hon. D. Eby: Any time you’re preparing legislation — I say this without
commenting specifically on this bill and waiving any kind of privilege
that might attach to deliberations that were entered into — or
considering policy related to legislation, you consider various options.
The option that is chosen makes it into the bill. This test is a test
that emphasizes proportionality, and as a policy choice, that is what we
are putting forward to the court.
M. Lee: As a policy choice, it weighs the prejudice that an injured
British Columbian would suffer by virtue of not being able to obtain an
additional expert report against the benefit of not increasing the
complexity and cost of the proceeding. So to whom is that benefit
owed?
Hon. D. Eby: All parties to the litigation.
M. Lee: Well, I guess if the party is the one who is going to suffer
prejudice, though, the one that is not able to meet this test…. I’m not
sure, under this rule, how they would have a benefit, because, of
course, they’re already being limited by the amount that they can
recover under these proceedings — the number of expert reports, the cost
per expert report and the disbursements.
[4:00 p.m.]
To the extent that the introduction of an additional expert report
would add to the costs of the proceeding, aren’t they already limited in
terms of what they can recover? Who bears the cost of that additional
expert report? Certainly, the plaintiff is not able to recover that
cost.
Hon. D. Eby: One of the pieces that we canvassed and one of the values that we
canvassed in relation to this bill is the idea that by transitioning to
more joint experts, and encouraging and incenting the retainer of joint
experts, people will have a better idea before trial about the value of
their claim, which will incent and encourage earlier settlement and
faster resolution. This rule, I think, accrues to the benefit of the
person, who often is the plaintiff.
I’ve seen the bills where $84,000 goes to expert reports, and
they’re paying 10 percent interest on money they’re borrowing from their
lawyers in a two-year litigation battle. If it settles early, it’s to
everyone’s advantage, but particularly to the plaintiff, who is the
injured party, in the sense that they’re accruing fewer costs with their
lawyer.
It’s also important to recognize that the limit applies to both
parties, both the defendant and the plaintiff equally. The benefits to
both parties of having a just, efficient, speedy, proportional
determination of the dispute is a very real one, and it’s one that we
believe that this rule advances.
M. Lee: In terms of the actual benefit, though, I want to come back to
that. Of course, when I talk about cost to the party that’s going to
introduce the additional expert report, the one for whom the application
is made, the actual flip side of that is not increasing the costs and
complexity of the proceeding itself. But again, on the disbursement
side, regardless of how much the proceeding actually costs in the end,
that party is only able to recover 5 percent of the
disbursements.
These disbursements, of course, don’t just relate to the expert
reports, although there will be disbursements that would relate, in the
terms of travel and time by that expert, other time of the expert to
participate in other proceedings related to the case, the lawsuit. So
why the need for the additional limitation on disbursements at the 5
percent level, particularly as I hear the Attorney General, again,
reiterate the desire to incent the greater use of joint experts? Why is
it needed, then, to have a 5 percent cap on disbursements
overall?
[4:05 p.m.]
Hon. D. Eby: The rules of court say that the process should be proportionate to
the amount that is at issue. It doesn’t say what that is equivalent to.
So we are setting out a value of 5 percent as being proportionate in
this proposal.
M. Lee: Well, I suppose, even at that determination by the courts on
costs, there is a significant process that is gone through on
disbursements. For example, when we look at rule 14-1 on costs and sub
(5) on disbursements, registrars in their capacities when assessing
costs “must (
a) determine which disbursements have been necessarily or
properly incurred in the conduct of the proceeding, and (
b) allow a
reasonable amount for those disbursements.”
Again, we’ve talked about, and the Attorney General cited again in
his own responses, the importance of rule 1-3. But when you read 1-3
together with this particular rule that I cited under 14-1(5), taken
together, that determination is already there. Again, why is it that
it’s needed to cap disbursements when the court already has, by the
existing rules of the Supreme Court’s civil rules, the requirements to
apply the reasonable test and determinations that are necessary that
would meet the proportionality concern that the Attorney General is
indicating in his response to my questions?
Hon. D. Eby: The registrar will still play an important role here. Government
really just wanted to clarify what exactly a proportionate amount of
disbursements is in our view.
In addition to the valuable role played by the registrar, I think
there is consensus that the 2010 amendments to the rules of court did
not realize the kinds of benefits that were intended around, among other
things, efficiency in relation to adversarial experts. Our hope is that
this will assist, on the motor vehicle side as a start, in articulating
a value — like a specific numerical value — around proportionality while
recognizing that the registrar and the courts will still play an
important superintending oversight.
M. Lee: One thing that I spoke about is how, when you look at
disbursements and the 5 percent test…. If we’re talking about damage
recovery, the actual resolved claim amount that is concluded may well be
very different between one plaintiff who is employed, earning in excess
of $200,000 on an annual basis, as a professional versus someone who is
elderly, a homemaker or a student whose — for a variety of reasons —
income loss damage claim may be significantly less than the other
individual I just described.
When you take a percentage limit on the disbursements that that
plaintiff could recover, it’s quite different depending on the nature of
the claim and the costs.
[4:10 p.m.]
The concern that is there is it has a discriminatory effect
depending on the nature of who the individual is and, effectively,
undermines the ability of someone who has lower income, someone who has
a lower settlement, from their ability to bring forward their claim,
because they will be limited in terms of the amount that they can
recover on the disbursements they need in order to bring forward their
case.
To the Attorney General, what is his response in terms of the
discriminatory nature in which that disbursement limit would be imposed
on different plaintiffs, depending on their financial and income
potential, as might be resolved on by the courts?
Hon. D. Eby: If you have a claim that’s worth less than $5,000, you can go to
the civil resolution tribunal, where there are very limited procedural
rules. You resolve the matter over your phone. There is considerable
leeway in how evidence is introduced, and it’s intended that you resolve
your dispute very quickly.
If it’s worth less than $35,000, you go to provincial small claims
court. You have, again, more limited procedural rules, greater leeway
around the introduction of evidence and an expedited process because the
value of the claim is less.
If you have a residential tenancy dispute, you’re not allowed to
go to B.C. Supreme Court. You have to go to the residential tenancy
tribunal — again, an expedited process, more flexible rules of evidence.
I don’t think anyone would say that your right to live in your home is
worth less or that it’s discriminatory that you go to a tribunal instead
of going all the way to B.C. Supreme Court with unlimited expert
witnesses and unlimited resources arrayed in a hearing about a
tenancy.
The system is set up in a way that one of the considerations
around procedure is the value of the claim that’s at issue. So if you
have a $10 million business dispute, it might be a different procedure
than if you have a small business. If you have a non-profit organization
that serves, disproportionately, people of a certain marginalized group,
you’ll have less money at issue and you’ll have different procedural
rights in your dispute.
I take the member’s point in that the amount at dispute is part of
the formula in determining the recoverable disbursements. I would also
underline that counsel need to take into account the value of the claim
that they’re advancing and the person that they’re advocating for when
they’re spending money to resolve that claim — to consider those things
and to ensure that they’re proportional. Proportionality is a key value
of our justice system.
M. Lee: Well, I think it’s important to be able to consider the impact of
these restrictions on court proceedings and the differences in result of
that impact depending on the circumstances — financial, economic
potential, or otherwise. I think that if we come back to the
disbursement limit itself, the Attorney General, in his previous answer,
acknowledged the role of the registrar and the judgment of the
registrar.
Is there an assessment that’s been done by the ministry that the
registrars of this province are improperly conducting their duties and
meeting the requirements under Supreme Court civil rules and that their
decisions to allow disbursements are somehow coming to the wrong result?
Is that what I’m hearing from this Attorney General?
[4:15 p.m.]
Hon. D. Eby: I certainly have no criticism of registrars or courts, but I do
see room for improvement in proportionality. It is probably a function
of the existing rules and the existing laws that fail to incent the use
of joint experts that counsel have not taken those up. How would I blame
the registrar for counsel failing to take up the use of joint experts or
counsel failing to proportionately litigate? It’s not the registrar’s
fault. Frankly, I’m not even sure it’s counsel’s fault. They work within
the rules that are out there.
What we’re trying to do is set out some different rules. We’re
following in the footsteps of many jurisdictions that have limited
expert reports in various ways, some in a far more restrictive way — the
United Kingdom and Australia — and some in a less restrictive way —
other provinces in Canada.
We have a British Columbia proposal, here in this bill, of how to
address this issue of adversarial expert reports, one that has been
widely identified as a problem by many, many observers of our court
system, and, in the absence of reform, seems like it will continue to be
an issue. So this is an attempt at reform that we hope will bring
proportionality, starting with motor vehicle collision
litigation.
M. Lee: The continued conversation through this committee stage is around
proportionality. I believe that I have made it clear, in terms of the
understanding around the current rules that are set out to address
proportionality, both under 1-3 and 14-1, as I’ve described…. The
Attorney General is conveying a view that, given the nature of claims
and how disbursements, presumably, and costs are being incurred in our
court systems, there needs to be further rules established.
We’ve talked, certainly, here about the limit on expert reports.
We haven’t yet addressed what is to be set in regulation in terms of the
actual cost per expert report. But as we talk about, again, this third
further limitation around disbursements…. In view of the Attorney
General’s response, I’d just like to ask the Attorney General, in terms
of the actual limitation on disbursements, what other jurisdictions are
utilizing this limitation.
Hon. D. Eby: Can the member advise to which limitation he’s
referring?
M. Lee: The limitation that would be, effectively, under sub (9)(a)(B),
which is that “…the amount of disbursements payable as a percentage of
the total amount recovered in an action…” be set out by
regulation.
We understand, by virtue of the Attorney’s announcement on
February 6, that that would be set at a 5 percent level. The Attorney
General has commented on that, or utilized that percentage here, so
that’s the limitation. I’m asking if the Attorney General can indicate
to this House what other jurisdictions currently employ a similar
restriction or limitation on disbursements.
Hon. D. Eby: Staff are not aware of a jurisdiction that uses a percentage of
the claim as a disbursement limit. However, there are very different
approaches in the U.K. and Australia, which I would say are
significantly more restrictive, in terms of this type of
disbursement.
[4:20 p.m.]
In the U.K., the maximum disbursement for a general practitioner
report is £180, which is about $307 Canadian. The maximum for
specialists, like an orthopedic surgeon, is £420, $716
Canadian.
For New South Wales in Australia, they start at $250 Australian
for a general practitioner, which is about $225 Canadian, and increase
to a maximum of $1,600 Australian for a specialist who has never seen
the patient before. That’s roughly $1,440 Canadian as the maximum
disbursement claimable. They also have limits on the number of experts
that you’re allowed. For example, in Australia, you’re only allowed a
single joint expert report.
M. Lee: Thank you for indicating other jurisdictions. I didn’t hear any
Canadian jurisdictions, so I take it that British Columbia would be the
first jurisdiction in Canada to have this percentage limitation on
disbursements. I’d ask the Attorney General to confirm that.
Secondly, that when we’re talking about the other examples of
other limitations in the U.K. and Australia, the examples that the
Attorney General has stated are examples where the cost, presumably, of
recovery of a particular expert report is limited to lower figures. I
take the Attorney General’s comment on that compared to the proposed
limit or the limit that we expect by way of regulation under this bill
at the $3,000 level.
Again, we will get to that discussion around that particular cost
item and some limitation on the number of expert reports.
Those types of limitations are consistent with the two other types
of limitations under this bill, but again, I did not hear in the
Attorney General’s response that there is any other jurisdiction even
outside Canada that would have the type of percentage of disbursement
limitation that is being proposed under this bill. Is that also
correct?
Hon. D. Eby: I thought I did say it in my original answer. I’m happy to say it
again. To the best of my knowledge, we — and staff — are not aware of
another jurisdiction that takes this approach yet. I think if it is
upheld, there will be other jurisdictions certainly looking at it. We
have every reason to believe it will be.
I’ll note…. It’s not a perfect comparison. Some caution has been
urged on me because the U.S. is so different in many ways from Canadian
litigation, including the size of awards. The default model in the
United States for litigation is that each party must bear their own
costs, period, in advancing litigation. None of the expert report costs
are available. So that would be a zero percent limit.
When you look at the amounts in Australia, where you’re only
allowed a single joint expert without leave of the court and you’re
limited to hundreds of dollars, not thousands of dollars, in terms of
the cost of those reports in…. In the U.K., I believe it’s no expert
evidence without leave of the court. We’ve got three. In the United
States, zero dollars in terms of supporting you in advancing your own
litigation. All common-law jurisdictions.
Then our approach. We fall somewhere between other Canadian
jurisdictions and the U.K. and Australia. Again, I’m reluctant to adopt
the U.S. as a comparator, but it is instructive that those policy
decisions can be made.
[4:25 p.m.]
I hope that eases the member’s mind in the sense that he seems to
have a belief that this is a profoundly draconian and unprecedented
incursion into litigation, when in fact, there are many precedents for
limiting experts and for limiting disbursement costs. This is one
example of it and not particularly restrictive compared with other
common-law jurisdictions.
M. Lee: I think as we go forward here, certainly in Canada, there is no
disbursement percentage limit anywhere else in this country. B.C. will
be the first one to add a further limitation on top of the limitation on
expert reports and the dollar figure per expert report.
We’ve talked about that first limitation as being subject to
judicial discretion, which is far more narrow than in any other
jurisdiction in Canada. And now, when you couple that with this
disbursement limitation, I would think that what we are being presented
with is very much a more restrictive legislative framework around expert
reports and costs.
When I look at the disbursement restriction, can I ask the
Attorney General: where did this particular limitation, the proposal for
this limitation, originate?
Hon. D. Eby: The 5 percent limit is consistent with the reimbursement that’s
currently estimated to be made by ICBC in about 70 percent of cases. The
reimbursement rate may be closer to 6 percent per file, but this figure
includes approximately $800 in court filing fees, on average. Fees
payable to the Crown are exempt. So the cap is set to 5
percent.
Now, I note that in the civil resolution tribunal, it’s a $5,000
maximum disbursement recovery. Their jurisdiction is $50,000. That was a
limit that was set by the previous administration.
M. Lee: Thank you for that response in terms of the figures that ICBC is
working with. Is there any concern, though, in terms of the…? What does
the balance of that look like in terms of the other 30 percent of cases?
What, typically, is the disbursement range on those costs?
[4:30 p.m.]
Hon. D. Eby: We don’t have those numbers.
M. Lee: Well, I think that in the context of reviewing this bill and
understanding what is, as the Attorney General confirmed, a novel,
groundbreaking limitation that this country has not seen, it’s important
that we understand how this limitation is coming back on disbursements,
particularly with the understanding that it’s being looked at as being
set at 5 percent.
Is the Attorney General’s expectation that that disbursement limit
would be set at 5 percent?
[S. Gibson in the chair.]
Hon. D. Eby: That is what is in the bill.
M. Lee: The actual 5 percent figure is stated where in the
bill?
Hon. D. Eby: The member is right, and a brief moment of inattention on my part.
It is and will be in the regulations. It’s not in the bill.
M. Lee: That’s the reason why I asked the question, because it’s a pretty
material factor here for us to understand the nature of, again, what we
have discussed, being a further narrowing of costs for parties,
particularly the plaintiffs’ side. I think it’s important that the
Attorney General can confirm to this House that by way of regulation,
that limit that’s expressed in sub (9)(a)(
B) will be 5
percent.
Hon. D. Eby: Yes.
M. Lee: In receiving that confirmation, then, can I ask again…? In the
absence of understanding the full experience, financially, of ICBC,
which, in response to my previous questions, the Attorney General has
referred to, were there any other considerations around costs that were
utilized to establish that 5 percent figure?
Hon. D. Eby: Not that I’m aware of, but I guess the member would need to
clarify a little bit more what he means by costs in terms of our
considerations.
M. Lee: As I understand it, the Attorney General has indicated that the 5
percent figure or a limitation on disbursements is related to ensuring
proportionality of disbursement costs that ought to be recoverable by
parties in the nature of these proceedings and that it’s necessary to
give courts and registrars further rules, parameters, under which
they’re able to award those costs.
[4:35 p.m.]
To be specific, I am mindful of the test that the courts are
having to meet — and parties — in sub 6(b), which refers to the cost of
the proceeding, versus the limitation that’s set out in sub 9(a)(
B) as
disbursements. As we talk about disbursements, again, the Attorney
General has indicated that there are reference points around 70 percent
of decisions, court cases.
In motor vehicle accidents, it’s been ICBC’s experience that
disbursements are usually at the 5 percent level of 70 percent of those
cases. He does not have with him access to the figures for the balance
of those court cases. I’m interested to still understand that, what that
figure would be. Because for anyone to assess here in this House whether
this is going to be a reasonable limit….
First, I question whether there should be a limit in the first
place on disbursements. I think that’s clear from the discussion we’ve
had to date. Secondly, even if there is to be a limit, as is proposed
under this bill, why is 5 percent the appropriate limit? I am querying
to the Attorney General: what other data sets, reference points, were
utilized in assessing the 5 percent limit, setting it at that particular
numerical percentage of 5?
Hon. D. Eby: As a transitional matter, for trials after October 1, where the
party properly incurred disbursements in excess of 5 percent before
February 6, you can apply to be exempted from the 5 percent. The second
thing is that there are a number of pieces excluded from the 5 percent —
fees payable to the Crown and sheriff, filing fees, court fees, jury
fees, disbursements where costs are assessed as special costs,
disbursements for expert reports on liability where the court orders
that they be excluded from the 5 percent cap.
Now, the member…. I understand his question — that he wants very
specific data about the number of claims and the value of disbursements.
ICBC does not have that data. But they do have…. I can advise the member
and this House that 70 percent of claims are going to be falling within
that 5 percent. Now, for those remaining 30 percent, there are a number
of potential explanations of why they’re outliers.
One is that ICBC acted very badly and that they litigated in a way
that drove costs up. In that case, if this happens in the
post-implementation environment of this bill, special costs are
available to the court to sanction that conduct and to increase the
amounts recoverable to the party that’s been aggrieved by ICBC’s bad
conduct.
The other possibility is that the plaintiff acted very badly, that
the plaintiff’s counsel went out and incurred a whole pile of expenses
well in excess of 5 percent, without any regard for proportionality or
appropriateness of incurring those expenses, and that’s why they’re well
outside that range. In that case, there’s no special costs award
available to you, because it’s your own conduct that resulted in
that.
Now, I don’t know if that’s adequate assurance to the member or
not that there are still safeguards in place if ICBC acts very poorly.
Now there is incentive for both plaintiff counsel and ICBC to use joint
experts and to limit the number of expert reports.
I hear from the member that he disagrees with the premise of this,
that he believes there should be unlimited disbursements regardless of
the value of a claim. On that, we’re just going to have to agree to
disagree. We won’t resolve it in this committee stage, because that is a
fundamentally different perspective on how courts should
operate.
[4:40 p.m.]
M. Lee: Well, of course, you know, we talked about this at second reading.
I took some time to outline how disbursements and how the rules of court
work. It’s not unlimited. It’s not unlimited now. Again, I took some
time and attention to refer the Attorney General to rule 1-3 and rule
14-1 of the Supreme Court civil rules. The Attorney General confirmed
here that he takes no issue on how registrars are interpreting and
utilizing those rules.
Under the current rules of court, it’s not unlimited. So when the
Attorney General gives an explanation that of the 30 percent of cases
that are outliers, to use his words…. Aren’t those outliers dealt with
by the existing rules of court?
Hon. D. Eby: I thought that I was clear before. Maybe not. The issue of
adversarial experts — the cost of them, the system that has grown up and
the cost and complexity that they bring to the system without adding any
clarity to the court — has been recognized as an issue for many, many
years in British Columbia’s courts. It is not the fault of the
registrars, the courts or even the lawyers. It is the nature of how the
rules have come together to operate, which is in a way that many people
think needs reform.
Now, we can have disagreements about what kind of reform there
should be. But I don’t even hear the member saying that he thinks that
there’s an issue here. I think that there’s an issue here with
adversarial experts. I think that there needs to be reform.
This is the proposal the government has put forward around that
reform. If the member disagrees with this model, that’s fine. But I
disagree with the member’s core assumption that the current system is
working just fine, as do many people. I can do that without assigning
blame to anyone, because that is simply the set of rules that people are
operating under right now, and it’s not working the way that it
should.
This is our proposal for reform. The member can vote for it, or
vote against it and put forward his own proposals. Or if he thinks that
things are working fine, then he can advocate that personal perspective.
I just don’t agree with it.
M. Lee: I think members on this side of the House are very clear about our
opposition to this bill. Part of the reason that that is the case, as I
expressed in our second reading speech — my colleague from
Richmond-Queensborough the same — is the lack of fairness in this bill
and the concern around the rights of British Columbians and their way to
access the courts.
This disbursement limitation, as we’ve talked about earlier, has a
discriminatory effect, depending on which individual we’re referring to.
So I continue to question the assertions and the premises that the
Attorney General gives for portions of this bill. That’s what we’re
doing here at committee stage.
Access to justice is very important for British Columbians. We
want to continue to ensure that is the case. Certainly, for the
outliers, for abuses, we need to ensure that there is not an inordinate
amount of cost that is exhibited and incurred in our court proceedings.
But as I have said, our existing rules already deal with that. It’s not
unlimited.
The other purpose of my question, though, to the Attorney General,
which he did reconfirm, is that…. I’m not hearing in the analysis of
this limitation on disbursements that there were any other data sets
utilized, other than what ICBC has provided for the purpose of this
bill. Can I ask, just as that is done: how does that analysis work
between the ministerial responsibility that the Attorney General has for
ICBC with the Attorney General Ministry? How does that combine in terms
of the efforts when it comes to analysis of this disbursement
limitation?
[4:45 p.m.]
Hon. D. Eby: The member will know that ICBC is a Crown corp. directed by a
board. They have no ability to advance legislation, nor should they.
This bill…. The policy work, the analysis, was done within the Ministry
of Attorney General, and it is a Ministry of Attorney General bill
tabled by me in this Legislature.
I think the member knows all of those things, but sometimes it’s
good to go over them.
M. Lee: I think it goes back to the discussions we’ve been having on this
bill in terms of the joint responsibility that this Attorney General
has. But without replaying that discussion that we had already at the
beginning of this committee stage, what the Attorney General just
confirmed is that the policy analysis and the sponsorship, certainly,
and review of this bill is through the Ministry of Attorney
General.
What I’ve heard in terms of discussion around limitations and
amounts…. The data sets which the Attorney General’s ministry is looking
at for the purpose of establishing further limitations…. What I heard
from the Attorney General is that the data sets are coming from ICBC.
The experience of ICBC in terms of the 70 percent of claims settling or
incurring disbursements at the 5 percent level was a figure the Attorney
General indicated that ICBC had provided or analyzed. Again to the
Attorney General: what level of involvement has ICBC had in this
bill?
Hon. D. Eby: I hear the member talking about data sets as if there are a large
number of data sets out there that were either ignored or preferentially
chosen by government. I welcome his suggestions about data
sets.
Unfortunately, in our court system, we don’t do a great job of
collecting data. That’s part of why we signed the triple aim agreement
with the B.C. Supreme Court chief justice and the Chief Justice of the
Court of Appeal to work together to improve the experience of people in
the justice system. A key part of that is data collection, understanding
better how people move through the justice system, where we can address
pinch points and so on. A recognition by all involved is that there’s an
opportunity to collect more information and to make better decisions
about how the court system operates.
It’s early days. There are not great data sets out there, in the
level of detail that I’m hearing the member ask for in his questions.
They just don’t exist.
Why did we gather data from ICBC in doing the policy analysis?
It’s because ICBC is involved in fully one-third of litigated cases in
the B.C. Supreme Court, and it gives us a perspective about how some of
this might play out. This is really helpful when you’re designing policy
and law to understand what the impact might be on people, which is a
lens that we put on all of our legislation when we bring it forward. How
will this affect people in British Columbia? We get the best data we
can.
Now, if the member has suggestions about other data sets of which
he’s aware — I’m glad to hear them — that might shed light on some of
these issues, we would do our best to gather them up. But in terms of
the data we did have, we think that it’s reliable, and it informed the
policy decisions that were made by the Ministry of Attorney General
staff in advising me, and my colleagues and I as the government, putting
forward this proposal to this House.
[4:50 p.m.]
M. Lee: Turning, then, to the limitation on the expense per expert report,
at the $3,000 level. First, let me just confirm to the Attorney General.
Again, $3,000 per expert report has been stated in the February 6
announcement by the Attorney General about this bill. Is that what will
be set by regulation, pursuant to this bill, if it passes?
Hon. D. Eby: Only for damages.
M. Lee: You say only for damages. When we look at the regulation-making
power under this bill, under (9)(a)(i)(A), it is on the amount of
disbursements payable for an expert report. So when the Attorney General
makes a distinction for damages, is there a different type of expert
report that might be caught within this framing?
Hon. D. Eby: It’s the same as we canvassed earlier. Liability expert reports is
the best example.
M. Lee: I understand that in the guidelines for the B.C. Medical
Association, there is guidance given as to the amount to be charged for
a medical report in the $1,800 level. Was there any consideration of
that? Why was the $3,000 level selected?
Hon. D. Eby: The member is correct. Doctors of B.C. provides non-binding
guidelines to their members suggesting a price of $1,832 for a
medico-legal opinion of average complexity, which is well below the
$3,000 limit. According to the ICBC data, about half of the expert
reports currently reimbursed by ICBC cost $3,000 or less.
M. Lee: In terms of the other half of medical expert reports from the ICBC
data, what is the range of expenditures or costs for those medical
reports?
Hon. D. Eby: Expert reports reimbursed by ICBC can range anywhere from $1,000
to $10,000, depending on the com