1. What mechanism does the WCB use to decide what company or individual, or individuals, specify to name in an action?
Answer: I assume that this question is asking "How does the WCB determine which company, individual or individuals will be named as a defendant(s) in an action to which the WCB is subrogated pursuant to subsection 12(4) of the Workers' Compensation Act?"
When an injured worker claims compensation, both the injured worker and his/her employer are required to file a Report of Accident. If a report indicates that some person (either a corporation or an individual), other than the injured worker's employer or co-worker, may be responsible for causing the injury to the worker, the WCB adjudicator assigned to the claim will forward a "Third Party Referrals" to the WCB's in-house legal counsel.
The WCB's in-house legal counsel will investigate the claim and make a recommendation to the Director of Client Services, based upon the possible liability of the defendant, as to whether an action should be commenced.
2. Who makes the decision to launch a prosecution alleging a violation of an NWT or federal law?
Answer: The WCB does not administer any federal legislation and is, therefore, not involved in any decisions to launch prosecutions pursuant to federal legislation. The Safety Act, the Mine Occupational Health and Safety Act and the Explosives Use Act, which are administered by the WCB, each prescribe that it is an offence, punishable by summary conviction, to contravene these acts. Each act specifies the maximum fine that a person found guilty is liable to pay. Safety Officers, Mine Inspectors and Explosive Use Inspectors for the respective acts investigate to determine if a contravention of the act has occurred. If the inspector is of the opinion that a contravention of the act has occurred, he/she shall discuss with the Crown Prosecutor's Office whether a prosecution should be commenced.
Prosecutions pursuant to these acts and regulations are unrelated to the civil liability that a defendant may incur pursuant to a "third party cause of action".
3. How are these cases funded and budgeted for?
Answer: Pursuant to subsection 6(1.1) of the Workers' Compensation Act, all costs of administering the act are paid out of the Accident Fund. A budget for these cases is developed based upon past experience and the number of ongoing actions.
4. Does the money come out of the accident fund?
Answer: Yes.
5. How often in its history has the WCB initiated a lawsuit to recover compensation?
Answer: The WCB, which was created in 1977, does not initiate lawsuits solely to recover the compensation it has paid to injured workers. The WCB ensures that injured workers and their dependants receive as much as they are legally entitled to receive. When the WCB recovers money, by way of third party actions it is also used to reduce the amount of assessments employers are required to pay.
Accordingly, the WCB will initiate litigation, all its own expense (as opposed to the injured worker's expense) to recover the damages that the injured worker sustained as a result of the negligence of someone other than the worker's employer or co-workers. Claims for damages can only be initiated if a worker's employer or co-workers. Claims for damages can only be initiated if a worker's injury was caused by someone other than the worker's employer or co-workers. The WCB and the injured worker can not sue the injured worker's employer or co-workers. The vast majority of defendants have liability insurance, which covers the defendant's liability including the cost of defending the third party action.
Between 1989 and the present, the WCB commenced 57 actions on behalf of injured workers and their dependants. In order to determine the number of actions that were commenced and concluded prior to 1989 would require the staff of the WCB to examine in excess of 50,000 archived files.
6. What were the results of those actions?
Answer: Because the settlements of these actions are bound by confidentiality and non-disclosure agreements, no information identifying the parties can be provided. The following chart relates solely to the litigation that has concluded since 1989. It specifies how much money was recovered and how it was disbursed, but the name of each claimant is not disclosed.
Claim Amount Payment to Reimburse WCB
recovered Worker/dependants legal/claims costs
1 $200,000.00 $50,000.00 $150,000.00
2 $0.00 $0.00 $0.00
3 $60,000.00 $28,224.70 $31,775.30
4 $80,333.21 $20,083.30 $60,249.91
5 $35,133.29 $8,099.04 $27,034.25
6 $37,500.00 $9,375.00 $28,125.00
7 $1,100,000.00 $371,200.00 $728,800.00
8 $23,000.00 $5,750.00 $17,250.00
9 $850,000.00 $346,748.68 $503,251.32
10 $65,000.00 $16,250.00 $48,750.00
11 $400,000.00 $100,000.00 $300,000.00
12 $172,463.18 $43,115.79 $129,347.39
13 $445,000.00 $111,250.00 $333,750.00
14 $22,144.31 $5,536.08 $16,608.23
15 $50,597.94 $12,178.56 $38,419.38
16 $43,868.24 $10,342.16 $33,526.48
17 $3,694.00 $923.50 $2,770.50
18 $13,000.00 $8,3347.98 $4,665.02
19 $18,470.96 $4,617.74 $13,853.22
20 $40,000.00 $20,927.32 $19,072.68
21 $400.00 $0.00 $400.00
22 $20,000.00 $5,000.00 $15,000.00
23 $128,000.00 $32,000.00 $96,000.00
24 $25,260.74 $19,862.34 $5,398.40
25 $147,269.58 $36,365.47 $110,904.11
26 $53,819.47 $8,700.00 $45,119.47
27 $15,000.00 $3,750.00 $11,250.00
28 $355,000.00 $213,500.00 $141,500.00
29 $17,000.00 $4,250.00 $12,750.00
30 $136,510.14 $34,127.53 $102,382.61
31 $57,246.27 $14,311.57 $42,934.70
32 $117,500.00 $29,375.00 $88,125.00
33 $19,203.32 $4,801.08 $14,402.24
34 $7,000.00 $0.00 $7,000.00
35 $1,870,000.00 $467,500.00 $1,402,500.00
36 $0.00 $0.00 $0.00
37 $125,000.00 $21,500.00 $103,500.00
38 $103,427.84 $21,644.43 $81,783.41
Total $6,857,842.49 $2,089,644.27 $4,768,198.62
7. Can the Minister provide us with a list of all actions initiated by the WCB since 1991, the disposition of the action and the settlement recovered, if any?
Answer: See answers to question six and eight.
8. Can the Minister provide us with a list of current outstanding legal actions and the stage they are at before the court?
Answer:
A Statement of claim was recently filed in one action to prevent the one year limitations of actions from lapsing. Additional information has to be gathered before it is determined whether the action will proceed. It would be inappropriate to list the defendants at this time, as they have not been served with the Statement of Claim.
9. How much money has been spent in each of the fiscal years since 1991 to fund actions pertaining to third party liability actions?
Answers: Prior to 1995, the WCB accounting procedures did not distinguish between legal consulting costs for Third Party Actions and legal consulting costs for general legal advice. It would be inappropriate violation of solicitor-client privilege to disclose the amount of fees being spent on the active third party litigation referred to in answer to question 8.
In 1991, the sum spent on all legal consulting $222,720.16
In 1992, the sum spent on all legal consulting $227,030.28
In 1993, the sum spent on all legal consulting $142,684.62
In 1994, the sum spent on all legal consulting $347,511.34
In 1995, the sum spent on all legal consulting $233,009.81
In 1996, the sum spent on all legal consulting $32,552.29
In 1997, the sum spent on third party litigation that is now closed $47,372.52
Return to Written Question 2-13(6), asked by Mrs. Groenewegen to the Minister of Education, Culture and Employment, concerning the support for NWT Friendship Centres.