WHEREAS ICBC frequently seeks to add local governments as parties to litigation in order to spread the costs of settlements or judgments; AND WHEREAS in many cases there is little, if any, liability on the part of the local government; AND WHEREAS ICBCs actions cause local governments to incur legal fees and sometimes contribute to settlements in order to avoid more significant costs: THEREFORE BE IT RESOLVED that the provincial government be requested to work with ICBC to ensure that local governments are only drawn into litigation when there is clear liability on their part.
Ministry of Transportation Infrastructure While it is certainly preferable that local governments are only drawn into litigation when there is clear liability by the local government, it is sometimes hard to determine this at the outset and under limitations provisions, claimants have only two months to give notice to a local government and six months to take action. ICBC has an obligation to keep insurance rates as low as possible for its customers and as a result, will always consider recovering costs where appropriate. ICBC will normally contact that local government to seek recovery before considering legal action and most of these situations are resolved without litigation.
ICBC It is certainly preferable that local governments are only drawn into litigation when there is clear liability by the local government. ICBC will always consider recovering costs where appropriate on behalf of policyholders and will contact municipalities to seek recovery before considering legal action. However, it is sometimes difficult to determine liability at the beginning of a claim and under the statute of limitations, claimants have only two months to give notice to a municipality and six months to take action. Most of these situations are resolved without litigation.