Canada's tort costs have increased in recent years, moving upward from Cdn$7.3 billion in 1998 to an estimated Cdn$10 billion in 2003. Some contend there is an unsettling, tilted playing field in favor of plaintiffs and legal findings that stretch the responsibility of policyholders - and insurers. In addition, there are many stories of defence lawyers crossing over to the plaintiff's bar to capitalize on a lucrative trend. The result is a steady stream of payouts or settlements for all sorts of liability. After sifting through criteria the courts have accepted and rejected, Owen Smith, president of Strategic Risk Control, developed a guideline known as the three P's - Policy, Procedure and Proof - and a more detailed, 14-point formula to create a risk system that will actually hold up in a trial. Smith notes that by following each of the 14 points, his clients have secured favorable settlements.

Liability