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w w w . c a n a d i a n l a w y e r m a g . c o m A P R I L 2 0 1 9 7 N E W F O U N D L A N D A N D L A B R A D O R INJURY CAP COULD STABILIZE AUTO RATES: REPORT T he Newfoundland and Labrador Board of Commissioners of Public Utilities has released its much-anticipated report on automobile insurance in the province. Although a contentious buildup preceded the report — including a campaign launched by personal injury lawyers to create opposition to a soft tissue injury cap — response to the board's findings has been muted. "The report tries to be objective and neutral. It reaches conclusions without making recommendations," says Jamie MacGillivray, founder and managing partner of MacGillivray Injury and Insurance Law, which has offices in Nova Scotia and Newfoundland and Labrador. The board reaches two significant conclusions in its 166-page report. "The report says increasing the deductible to $5,000 or $7,000 isn't going to help but put- ting a minor soft tissue injury cap will possibly stabilize rates," MacGillivray says. Increasing the current $2,500 deductible even to the highest level of $10,000 would reduce loss costs for private passenger vehicles in the range of nine to 13 per cent, according to the report. This is equal to a premium savings of $49 to $65, well below the $190 required to achieve an adequate rate level. Rate increases are expected under this scenario. A $5,000 cap, on the other hand, would likely result in reductions in the range of 23 to 29 per cent. This translates into premium decreases of $121 to $151. "As a result," the board states, "there was general consensus that the implementation of a cap may contribute to rate stability in the province but is unlikely to result in rate decreases for consumers, in the absence of additional reform measures." There is no optimal solution, says the board. "It is clear that the introduction of both a cap on pain and suffering for minor injuries and an increased deductible would have serious implications for claimants. Further the implementation of a minor injury cap would represent a significant change for claimants in this province since a cap would have very different impacts than the current deductible." The government is now inviting representatives for both lawyers and insurance companies to come together to discuss the report. According to the Insurance Bureau of Canada, drivers in Newfoundland and Labrador currently pay 35 per cent more, on average, for automobile insurance than drivers in the Maritime provinces. – donalee Moulton REGIONAL WRAP W H A T ' S H A P P E N I N G F R O M C O A S T T O C O A S T COURT FEES SKYROCKET IN SASKATCHEWAN P.9 B.C. GOVERNMENT LIMITS EXPERT USE IN PERSONAL INJURY CLAIMS P.12 N O VA S C O T I A CAP AND TRADE IN EFFECT M ore than 15 months after Nova Scotia passed legislation to create a provincial cap and trade program, regulations are now in effect. The new program means greater report- ing for some businesses and greater opportunity for some lawyers. "This will introduce a new category of prac- tice. This will create an ongoing area of trade," says Mohammad Ali Raza, a partner with Cox & Palmer in Halifax. "There will be trade deals," he adds. "There are strong provisions to limit insider trading. Lawyers will need to advise on this." Under the regulations, companies over the accepted threshold must report their greenhouse gas emissions. The amended Environment Act requires facilities that generate 50,000 tonnes or more of greenhouse gas emissions annually to report as well as petroleum product suppliers that place or produce a minimum of 200 litres of fuel per year for consumption in the Nova Scotia market and natural gas distributors that produce at least 10,000 tonnes a year. Electricity import- ers with 10,000 tonnes or more of emissions a year will also be required to report. The legislation "establishes a baseline and cre- ates a positive obligation on anyone producing greenhouse gas emissions above the threshold," says Raza. Those companies above the threshold are identified as emitters, he adds. "They will need to reduce over time or buy allowances. You will pay a price for continuing to produce green- house gas emissions at the same level." The Nova Scotia system, which the govern- ment contends sets one of Canada's most ambi- tious greenhouse gas reduction targets, cutting emissions by 45 to 50 per cent by 2030 from 2005 levels, differs from other provincial cap and trade approaches. There will be no option to trade allowances across other jurisdictions and most of the allowances will be given out at no cost. "The initial offering is for free," says Raza. — donalee Moulton "The report tries to be objective and neutral. It reaches conclusions without making recommendations." Jamie MacGillivray, MacGillivray Injury and Insurance Law

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