Law Times

PAGE 12 FOCUS January 11, 2010 • Law Times Subrogation service helps lawyers BY DARYL-LYNN CARLSON For Law Times L aw fi rms serving large insurance companies have a new option to fa- cilitate continuity and recover smaller monetary amounts for their clients. Recognizing that insurance companies and, in particular, their representative law fi rms often don't have the resources to allocate for smaller claims, Chris Smith, a former insur- ance professional, launched his own business, Subroga- tion Group Ltd., based out of Burlington, Ont. Smith says he identifi ed the specialized niche after recog- nizing that insurance compa- nies and law fi rms that wanted to provide continuity for their clients needed aff ordable ex- pertise to handle third-party enforcement. "Insurance companies and law fi rms want to keep a good client relationship," says Smith, a former senior claims exam- iner who worked with a major insurance company before set- ting out on his own to launch his subrogation service. Still, law fi rms in particu- lar don't want to charge their hourly rate to pursue smaller claims but, at the same time, would like to provide clients with seamless service. "Th ey can use us as sort of a Clients and Counsel who know Insurance, know us... So should you! secret weapon as we can work in partnership with them and talk to them on their level," he says. "Th ey can resolve these fi les respectably and amicably, which makes the client happy because there is someone who is going after the judgment enforcement and recovering money for them." Th e types of fi les Smith's com- pany works on are based on a wide variety of insurance matters ranging from commercial claims to individual motor vehicle fi les. By defi nition, subrogation Call us or visit our website for more information. is a common-law term relevant mostly to insurance contracts. It is based on the concept of indemnity, enabling third par- ties to be pursued for monetary recovery if they are deemed to have contributed to an incident resulting in a loss recoverable through insurance. Ontario's Insurance Act ad- dresses subrogation in a num- ber of sections. As well, there have been several cases in the provincial courts going all the way up to the Supreme Court of Canada that have led to amendments of statutes deal- ing with subrogation. Gilbertson_LT_Oct19_09.indd 1 10/13/09 3:15:03 PM Independent subrogation services are abundant in the United States due to its larger market, says Smith, who notes business has been brisk since he launched his company. In delivering his services, he uses a progressive approach that draws on his insurance background while deploying in-depth investigations and leading-edge technology that he says enables him to maxi- mize clients' net profi t. In less than a year, Subroga- tion Group Ltd. recovered a total of $1 million for clients from more than 18,000 fi les. Th ose clients include insur- ance companies, municipali- ties, third-party adjustment fi rms, insurance brokers, self- insured parties, retailers, risk managers, and manufacturers. Smith also recently hired Dar- ryl Moody, a former insurance professional, as his company's vice president of risk and recov- ery and recently moved his Bur- lington headquarters to a larger space to accommodate growth. Chris Reain, a partner at Black Sutherland LLP in To- ronto, says that for lawyers, be- ing able to use Smith's services can assist with facilitating good client relationships. "Insurance companies, a lot like law fi rms, are too busy to deal with the subrogation aspect of some of these claims, especially for smaller claims," says Reain. "So it is a huge benefi t for Insurance and Risk Management in Commercial Leasing Finally, a resource that simplifies these complicated concepts Find detailed discussion on: • the types of insurance that apply to landlords and tenants • risk that is excluded from coverage and factors that limit insurance proceeds or recovery • clarification on common misconceptions such as key differences between "additional insureds" and "additional named insureds" • the right to subrogate and waivers of subrogation • express and implied common law releases and indemnities • managing liability for pure economic loss and implications in the leasing community • the damage and destruction provisions of a lease and how they interrelate with the repair, insurance, indemnity and release provisions … and much more. ORDER your copy today Hardbound • 210 pp. 2009 • $98 P/C 0299010000 ISBN 978-0-88804-483-9 This unique resource includes over 100 case commentaries, detailed analysis and references to applicable statutes from across Canada. It also includes numerous precedent provisions and drafting tips and a glossary of insurance industry terms to guide you through the process. a lawyer to tell their client, an insurance company or a com- pany generally, that 'Yes, we can handle all of your subro- gation and recovery no matter how small. We have somebody who can run with it.'" Reain, whose fi rm's busi- ness law group handles a broad range of corporate and com- mercial matters on behalf of fi nancial and insurance institu- tions, says insurance companies and lawyers aren't able to pur- sue smaller subrogation claims due to the expense involved. "His company can operate less expensively than a lawyer can to a certain extent," says Reain. "He's almost like an out- sourced or hired subrogation and recovery department that can do the work when insurance com- panies or lawyers are too busy and not able to deal with the volume, so it's a great resource for my clients and for me." He also points out that ef- fective Jan. 1, the Small Claims Court threshold increased to accommodate disputes of a higher value to $25,000 from the previous $10,000 limit. "Th at will be a huge ben- efi t to our mutual clients," says Reain, referring to matters Smith can pursue for recov- ery through the Small Claims Court venue. Th e new threshold, in fact, For a 30-day, no-risk evaluation call: 1.800.565.6967 LT0110 MICHAELOFF_Insurance and Risk Managemnt (LT 1-3x4).indd 1 Canada Law Book is a Division of The Cartwright Group Ltd. Prices subject to change without notice, to applicable taxes and shipping & handling. www.lawtimesnews.com 1/6/10 8:24:17 AM falls precisely within the pur- view of many of the smaller amounts Subrogation Group Ltd. is focusing on in its recov- ery business for insurers and law fi rms. LT Dawn Michaeloff

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