- 50% of the deductible amount for investigation and defence expenses when the Statement of Defence or responding material is filed
- 50% of the damages amount for investigation and defence expenses due or incurred at the time of commencement, when examination begins, or once a pre-trial conference is held
- Any outstanding deductible amount left is applied to judgments, settlements, and/or costs of repairs when the expenditure is due.
For example: a lawyer with the standard $5,000 deductible is required to pay $2,500 when a Statement of Defence or other responding material is filed; and $2,500 once examination for discovery begins or once a pre-trial conference is conducted if no examination for discovery is held, assuming that the covered investigation and defence costs incurred exceed these amounts.
If the claim is settled prior to a Statement of Defence or other responding material being filed, the deductible applies to any indemnity payment or costs of repairs incurred only. If, in this scenario, the indemnity and/or repair is less than the $5,000 deductible, the lawyer is required to pay this lesser amount.
Will my deductible be called on if a claim is made against me arising out of a mentoring relationship?
- the mentor and mentee agreed to enter into a formal mentoring relationship, as evidenced by a written document of some kind;
- the mentor had no contact with the mentee’s client that would create a solicitor/client relationship; and
- the mentee understood that the mentor was responsible for individually and independently being satisfied of the soundness of any suggestions, recommendations or advice-like comments made by the mentor.
The written document evidencing the relationship does not have to be a formal signed mentoring agreement. It can be as simple as an e-mail acknowledging the relationship and the three terms listed above. The Managing a mentoring relationship booklet contains a helpful precedent of a simple mentoring agreement.