Mortgage Broker

46 | winter 2015 mbabc.ca MortgageBroker New tribunal enables Internet-based dispute resolution in 2015 Online Dispute Resolution By samantha gale newtribunal From time to time mortgage brokers get ensnarled in disputes with clients, former owner-brokers or even other mortgage brokers that escalate to the point where formal adjudication before a court is required. e Civil Resolution Tribunal Act was given royal assent in 2012. It created a new adjudication body for resolving simple civil disputes called the Civil Resolution Tribunal, which is expected to be in operation sometime in 2015. e primary aim of the legislation is to create a formalized Internet-based system of alternative dispute resolution for strata owners who have disputes with the strata corporation or other owners. However, any small claims matter can potentially be resolved in the new tribunal if the parties consent, including those involving mortgage brokers. e Civil Resolution Tribunal now has a dedicated website at www.civilresolutionbc.ca that posts updates on the status of the tribunal and other information. In addition, Shannon Salter has been appointed as chair of the Tribunal. Salter's background includes being an adjunct professor of administrative law at the UBC Faculty of Law, a commissioner of the Financial Institutions Commission and vice- president of the British Columbia Council of Administrative Tribunals. e Civil Resolution Tribunal will be able to handle the following kinds of disputes 1 : 1 is list is taken from the notice issued by the Province of B.C.. See www.ag.gov.bc.ca/ legislation/civil-resolution-tribunal-act/index. • Small claims disputes where the parties decide to take the matter to the tribunal instead of the court, up to a maximum value of $25,000 for: ◦ debt or damages; ◦ recovery of personal property; ◦ specific performance of an agreement relating to personal property or services; or ◦ relief from opposing claims to personal property. • Strata disputes between owners of strata properties and strata corporations for a wide variety of matters such as: ◦ non-payment of monthly strata fees or fines; ◦ unfair actions by the strata corporation or by people owning more than half of the strata lots in a complex; ◦ uneven, arbitrary or non-enforcement of strata bylaws (such as noise, pets, parking, rentals); ◦ issues of financial responsibility for repairs and the choice of bids for services; ◦ irregularities in the conduct of meetings, voting, minutes or other matters; ◦ interpretation of the legislation, regulations or bylaws; and ◦ issues regarding the common property. However, the tribunal will not be able to decide tribunal matters that affect land, such as: • Ordering the sale of a strata lot; • Court orders respecting rebuilding damaged real property; • Dealing with developers and phased strata plans; • Determining each owners' per cent share in the strata complex (the Schedule of Unit Entitlement). What is wholly novel about the new tribunal is that the parties may resolve disputes over the Internet by using an online party-to-party negotiation service, wherein a party with a dispute can enter the details of the claim online. e opposing party is then notified of the electronically filed dispute and with that opposing party's consent, the parties are then guided through an Internet- based structured negotiation process. e process is monitored and the tribunal staff may provide assistance in order to encourage resolution of the dispute. If the parties are unable to negotiate a resolution of the dispute online, they can ask the tribunal to mediate a settlement, which will also be done via the Internet. e mediator can direct parties to produce documents. If they cannot reach a settlement of the issues, then an adjudicator can step in and make a binding ruling on the matters in dispute. It is anticipated that the adjudication process will be electronic, but the adjudicator may conduct hearings over the telephone or by video conference. e new electronic tribunal is likely to provide easy access to complainants wishing to obtain compensation from mortgage brokers or lenders, as the process can be initiated anywhere and at any time using any personal computer. Mortgage brokers are therefore likely to encounter the new e-proceedings at some point aer the tribunal is in operation. •

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