After years of determined advocacy, Murphy Battista and co-counsel have achieved a significant victory for British Columbians in a landmark class action against the Province of British Columbia and the Insurance Corporation of British Columbia (ICBC).

CBC news coverage of the settlement: B.C. court approves 2 settlements in ICBC class-action lawsuit.

Led by J. Scott Stanley and co-counsel, the class action lawsuit (known as Rorison and Methot v. ICBC) alleges that ICBC engaged in an unlawful scheme to divert money from the accident benefits accounts of injured individuals to the BC Medical Services Plan (MSP). The claim suggests that because ICBC applied these MSP charges for doctor visits to individual benefit accounts, some people (the Accident Victims Class) were unable to access the full amount of accident benefits they were entitled to receive.

In addition, the settlement addressed the improper diversion of funds to the Province for the cost of physicians which increased the cost of mandatory ICBC auto insurance premiums for over 5.5 million British Columbians (the Rate Payer Class) and amounted to an unconstitutional tax.

Court Approves Two Settlements

The British Columbia Supreme Court has now approved settlements for both the Accident Victim Class and the Ratepayer Class.

Compensation for Accident Victims

The Accident Victim Class consisted of individuals catastrophically injured in motor vehicle accidents whose accident benefit accounts were improperly charged for physician visits.

Under the approved settlement, ICBC has agreed to pay:

• $265,475.27 for unpaid accident benefits still owing to class members.
• $129,420.39 in interest on those unpaid benefits.
• $1,000 in additional compensation for each affected class member.

The total settlement value for the Accident Victim Class is approximately $657,000.

The firm pursued this portion of the case on a pro bono basis, ensuring that class members receive their compensation without legal fees being deducted from their recovery.

Benefits for British Columbia Ratepayers

The Ratepayer Class included more than 5.5 million British Columbians who purchased compulsory ICBC insurance and were affected by the inclusion of physician service costs within insurance premiums.

Murphy Battista secured a $12.2 million settlement with the Province of British Columbia. Recognizing that direct payments to individual ratepayers would amount to only a few dollars per person, the Court approved directing the settlement funds to organizations whose work benefits the class as a whole.

The funds will be distributed to:

• Mothers Against Drunk Driving (MADD Canada), which works to reduce impaired driving and support victims; and
• Parachute, a national injury prevention organization dedicated to reducing serious injuries and fatalities on Canadian roads.

The Court found these organizations have a direct connection to the interests of British Columbia drivers by promoting road safety and injury prevention.

A Meaningful Result for British Columbians

This case involved complex legal and constitutional issues, as well as decades of government and ICBC practices dating back to the 1970s. The Court’s approval brings closure to a lengthy and hard-fought litigation process and reflects Murphy Battista’s commitment to holding public institutions accountable and advocating for the rights of injured people and British Columbians as a whole.

Murphy Battista is proud of the outcome achieved by J. Scott Stanley and co-counsel, and grateful to the representative plaintiffs whose efforts helped bring this important case forward.