Workers' compensation is a no-fault insurance system for injuries arising out of and in the course of a worker's employment. Insurance systems of this kind are provincially, federally and territorially mandated through legislation.
Decision
Decision No. 1373/22, 2024 ONWSIAT 1903 concerned an application under section 31 of the Workplace Safety and Insurance Act, 1997, S.O. 1997, c. 16, Sched. A ("WSIA").
The applicants were in the business of fabricating and installing marble, granite, and quartz products. The respondent was MI. The applicants, along with the co-applicant, JC, were defendants in an action filed by the respondent in the Ontario Superior Court of Justice.
The respondent was injured on March 24, 2020. In his amended statement of claim, he stated that he was helping JC move a crate of marble tiles at the applicants' premises. When the respondent was beside the load of marble and JC was operating a forklift, the crate "suddenly and without any warning ... shifted and fell towards" him. It struck the respondent and pinned him to the floor which resulted in injury (the "Incident"). He obtained benefits from the Ontario Workplace Safety and Insurance Board but later filed the action at the centre of the application.
The Workplace Safety and Insurance Appeals Tribunal (the "Tribunal") found that the respondent's action in the Superior Court was barred by the WSIA for the following reasons:
- The applicants were an employer at the time of the Incident.
- After applying a multi-factor approach to the relationship between the applicants and the respondent, consistent with the Supreme Court of Canada's decision in 671122 Ontario Ltd. v. Sagaz Industries Canada Inc., [2001] 2 S.C.R. 983, the Tribunal found that MI was not an independent contractor. Sagaz provides that "the central question to determining if a person is an employee or an independent contractor is whether the person who has been engaged to perform the services is performing them as a person in business on his own account".
- The respondent was a worker at the time of the Incident.
- The respondent was in the course of his employment at the time of the Incident.
- There was a substantial connection to Ontario – even though the respondent himself was a resident of Quebec.
Takeaway
Provinces and territories other than Ontario will likely have similar legislative provisions regarding the exclusive jurisdiction of a particular adjudicator (often the applicable appeals tribunal) to determine the right of an applicant to bring a civil suit for an injury instead of accessing compensation benefits under the compensation insurance system.
For example, in British Columbia, section 127 of the Workers Compensation Act, R.S.B.C. 2019, c. 1 prohibits a worker (or the worker's family member or dependent) from filing a court action against his or her employer, another employer or another worker for a breach of the duty of care, or bringing another action for injury, disablement or death, where the underlying conduct arose out of and in the course of employment. In a legal proceeding that involves a civil suit for damages, the court may be asked to decide whether the injured person has the right to bring the suit. If the injury, disability or death is part of the court action, the court or any party to the action can request a decision from the B.C. Workers' Compensation Appeal Tribunal (WCAT) to determine whether the injury, death or disability is work-related and whether parties to the court action were workers or employers.
This decision serves as a helpful reminder for employers across all jurisdictions. When defending against an injury claim by an employee in a civil action, an employer should carefully review whether the claim is before the correct adjudicator. Further, where applicable, the employer may consider bringing a certification application in support of the finding that the employee's civil claim should be dismissed as statute-barred and he or she, as a worker under the relevant compensation legislation, should access benefits and compensation through the provincial or territorial insurance system rather than by suing the employer for damages.
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