In State Farm v. Old Republic, 2015 ONCA 669, Justice Simmons' reasons confirm that it is absurd to interpret Rule 9(4) to mean that a heavy commercial vehicle is liable for loss transfer to the insurer of every other non-heavy commercial vehicle involved in a chain reaction accident.
The Court of Appeal agreed with Old Republic's position that the word "incident" as it appears in sub-clauses (a) and (b) of s. 9 of the FDRs refers only to the described collision in the particular sub-clause and not the entire chain reaction accident as a whole.
We are thrilled to have successfully overturned the prior Arbitration and Superior Court Appeal decisions - securing an important result for heavy commercial insurers and the trucking industry in Ontario. Otherwise, heavy commercial vehicle insurers would face virtually unlimited claims for loss transfer, without any policy limits, if involved in multiple vehicle pile up accidents.
Read the entire decision here: http://www.ontariocourts.ca/decisions/2015/2015ONCA0699.pdf