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Competition Tribunal Denies Insurance Bureau of Canada Motion to Void Agreement with Ontario Dealer Group
The Used Car Dealers Association of Ontario notched a win in legal arena earlier this month when the Competition Tribunal denied a motion from the Insurance Bureau of Canada to rescind an Interim Supply Order that the two parties agreed to in October.
This Interim Supply Order — which both parties green-lighted on Oct. 20 — temporarily gives UCDA access to insurance claims data from IBC until the Tribunal rules on the “Refusal to Deal” application brought by the dealer association.
So what led to IBC seeking to void the order?
“The Insurance Bureau of Canada moved for an order rescinding a consent Interim Supply Order on the basis of changed circumstances because State Farm Mutual Automobile Insurance Company (a member of IBC) instructed IBC not to supply its data as contemplated by the Interim Supply Order,” the Competition Tribunal explained in the introduction to the public version of its explanation for denying IBC’s motion.
“This is not a case of ‘changed circumstances;’ it is one of ‘changed mind,’” it added, later noting: “The motion to rescind the Interim Supply Order is predicated on State Farm’s direction not to continue the data supply of State Farm’s information to UCDA as provided in the Order.
“However, State Farm has chosen not to participate in these proceedings, has filed no evidence and has taken no steps to assist the Tribunal’s process,” it added.
With regards to the parties involved, UCDA legal services director Warren Barnard said in a statement: “With the motion out of the way, the UCDA can now focus on its pending application.”
A spokesperson for IBC gave Auto Remarketing Canada the following statement this morning: “The Competition Tribunal¹s decision did not address the merits of UCDA’s application. The decision was in relation to interim supply arrangements between IBC and UCDA. A hearing before the Tribunal on the merits of UCDA¹s application has yet to be held.”
It added: “Given that this matter remains actively before the Competition Tribunal, it would be premature and inappropriate for IBC, or anyone else, to comment further at this time.”
More Background of Legal Matter
This ruling is the latest in an ongoing legal matter between UCDA and IBC that dates back to last year. Shedding some light on the background of this case, the Tribunal document explained that UCDA — as a member of IBC — had used the bureau’s Web Claims Search for its Auto Check vehicle history report service. The Web Claims Search is the only place where the necessary data for these reports can be found, officials noted.
On June 17 of last year, IBC stopped supplying the Web Claims Search application to UCDA, so the dealer association “had no choice but to suspend its Auto Check Service,” according to the Tribunal.
Less than two weeks later, UCDA applied for leave from the Competition Tribunal under section 75 (refusal to deal) of the Competition Act, as well as subparagraph 76(1)(a)(ii), which deals with price maintenance.
The Tribunal granted leave under section 75 — but not section 76 – in September.
As part of the “refusal to deal” section of its application, UCDA asked that the Tribunal order IBC to recognize the association as a customer and start providing the Web Claims Search data again. Additionally, UCDA requested section 104 of the Competition Act for an interim supply order.
“In its decision granting leave, the Tribunal had encouraged the parties to consult each other to see if they could agree whether an interim supply order could be made and, if so, on what terms,” the Tribunal documents noted. “The parties reached an agreement on the terms of interim supply and on October 20, 2011 the Tribunal issued an order stipulating the following:
‘Until the disposition of the UCDA’s application under section 75 of the Act by the Tribunal, or the withdrawal, cessation, settlement or termination of that application by other means, the IBC is to supply the UCDA forthwith with access to the IBC’s Web Claims Search Application on the basis previously supplied prior to June 17, 2011, and in accordance with the Access Agreement made as of March 17, 2006, between the IBC and the UCDA.’”
For more details on the background of this case, read Auto Remarketing Canada’s stories below:
http://www.autoremarketing.com/trends/ontario-ucda-autocheck-back
