Secret Decisions and AI Submissions: Civil Resolution Tribunal Challenges

What happens when a legal system designed for small claims is used to tackle complex issues involving international companies and constitutional requirements? Barrister and Solicitor Michael Mulligan takes us inside a fascinating recent case that exposes serious flaws in British Columbia’s Civil Resolution Tribunal system.

Originally created to efficiently handle disputes under $5,000 and minor strata disagreements, the CRT has been expanded into areas far beyond its capabilities. The recent decision involving Twitter/X reveals a troubling reality: secret decisions and unenforceable orders against international companies, with no authority to address constitutional challenges, and vulnerability to exploitation through AI-generated submissions. The tribunal found itself ordering a Texas company to mail a $100,000 penalty to a Victoria PO box – an exercise in futility that undermines confidence in our justice system.

The conversation then shifts to a cautionary tale about insurance coverage that every homeowner needs to hear. A family lost hundreds of thousands in coverage when their house burned down from a prayer candle fire – not because of any wrongdoing related to the fire, but because they failed to disclose an abandoned marijuana grow operation in a distant outbuilding. This case demonstrates the critical “utmost good faith” principle in insurance: failing to notify your insurer in writing about any material change in risk can void your coverage completely, even when that change has nothing to do with your claim. Consider all the renovations, changes, or activities on your property that might constitute “material changes in risk” – your financial security may depend on proper disclosure.

 

Legally Speaking with Michael Mulligan is live on CFAX 1070 every Thursday at 12:30 p.m. It’s also available on Apple Podcasts or wherever you get your podcasts.