Canadian Heritage Committee on July 27th, 2022

[Anthony Housefather, Liberal, Mount Royal, QC]

That sounds very altruistic of an insurance company. I've never seen one in the past say, “We know nothing about the claim. We've never deposed the victim. We know nothing about the underlying facts of the claim or whether the claim is meritorious or not, but just go ahead and settle it, and we may cover you.”

Did AIG, based on this, say, “By the way, Hockey Canada, we will never pony up on this claim because you settled it without our review”, or did they just say, “Yes, we'll continue to potentially cover this claim”?

[Barry F. Lorenzetti]

I don't really think they said it in that fashion. They simply agreed to Hockey Canada's request to settle this claim based on the information that we now know about and that AIG was informed of.

The subject, to my recollection or to my knowledge, never came up as to whether they would reopen the claim down the road if Hockey Canada sought from them compensation or indemnification.

[Anthony Housefather, Liberal, Mount Royal, QC]

Okay, normally you advise your insurer because you're potentially going to seek compensation. I'm not sure that, if the insurance company's not covering anything, they need to agree or not agree to consent to settle the claim. Basically it sounds like the two parties agree that Hockey Canada would settle the claim out of this reserve fund and that the insurance wouldn't pay anything.

I'm trying to understand how the insurer may potentially cover a claim that was settled in this manner by Hockey Canada. I've never read an insurance policy that would allow such a thing. Can you explain if you believe that the insurance company may potentially say, “Yes, we're going to pay out this claim based on Hockey Canada having done the type of process that it did”?

[Barry F. Lorenzetti]

As I said in my opening statement, sir, and not being a party, I think that question is better answered by AIG, the insurance company themselves, not me.

[Anthony Housefather, Liberal, Mount Royal, QC]

I agree with you completely that we need to hear from AIG on that question, absolutely.

Can I ask another question? You have been a broker, I imagine, for many years, distinguished yourself and risen in your field. Do you often see a claim that was potentially insurable settled in this manner so quickly?

[Barry F. Lorenzetti]

You know, I've been in this business for, as you said, quite some time, and I've seen a lot of different situations. I would say that, unfortunately in our industry, I can't say that claims are handled the same way for each specific incident. You're a lawyer; I think you'd understand that.

As for this claim or this incident that came about as a claim, as I mentioned earlier, we were of the opinion that not all of the coverage was recoverable. I would suggest that the question would be better addressed to the insurer, with collaboration from the insured.

[Anthony Housefather, Liberal, Mount Royal, QC]

Thank you.

Madam Chair, do I have any more time?

[The Chair, Liberal, Hedy Fry]

You have 19 seconds, Anthony.

[Anthony Housefather, Liberal, Mount Royal, QC]

I'll just finish up by thanking you very much.

I agree with you that we need to hear from the insurer, so thank you so much, Mr. Lorenzetti.

[Barry F. Lorenzetti]

It's my pleasure.

[The Chair, Liberal, Hedy Fry]

Thank you.

We now go to Mr. Lemire for six minutes, please.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you, Madam Chair.

Mr. Lorenzetti, thank you for being with us. Indeed, your participation in today's meeting wasn't mandatory. Thank you for accepting our invitation.

We considered it important to invite you because there seemed to be an apparent conflict of interest. Furthermore, I sensed a contradiction in the speech on June 20. Based on our understanding, the Hockey Canada Foundation, which you sit on as a member of the board of directors, was not aware of the alleged events in June 2018. Board members learned of them recently, in June 2022. You may have played a role in settling the claim and may not have communicated some information.

What is your reaction to this apparent conflict of interest?

[Barry F. Lorenzetti]

Thank you, Madam Chair.

First of all, I don't participate in the claims resolution process. BFL Canada is a broker, not an insurance company. It's fairly important to specify that fact.

The Quebec Insurance Brokers Act allows me to say some things, but prevents me from saying others.

I'm sworn by confidentiality, is what I'm saying.

I need to understand. When you speak to the fact that there may be a conflict of interest, exactly what do you mean by a conflict of interest here? I don't see any conflict of interest with my role here specifically.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

That was the thought behind my question. At first glance, I saw a conflict of interest and wanted to give you the chance to maybe respond to it, given the circumstances. Thank you for your answer.

What, exactly, is your role within the Canada Hockey Foundation? Do any aspects go beyond just sitting on the board of directors?

[Barry F. Lorenzetti]

I'm very glad you asked that question, Mr. Lemire.

Thank you, Madam Chair.

I apologize, as it's my first rodeo.

I'm very engaged in the foundation. I am, above all, a donor.

I've been very involved with women's hockey. I'm a sponsor through the foundation of women's hockey, specifically coaching, training and mentorship. I'm also involved in what we call the assist fund, to which our company and I personally have donated significant funds to get underprivileged kids into hockey who can't afford registration. There's also a program that I introduced, the dreams come true program, for individuals who want to get a taste of hockey and what it means to put on a pair of skates, skate on a rink in the winter and have fun. I have been heavily involved in the foundation. I have been past chair of the foundation and have been very involved in encouraging diversity and getting more women involved in the sport.

Thank you for asking me this question and giving me the opportunity.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Congratulations for your work on advancing women's sports. That is a legacy which I think is important.

Have you ever handled money and transferred money between different partners?

[Barry F. Lorenzetti]

Handled money? No.

I hope I understood the question correctly, but the answer is absolutely not.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

I'd like to hear your observations on the following point, as a subject-matter expert.

Does the Canadian Hockey League use Hockey Canada's insurance program?

Something isn't clear to me. What is Hockey Canada's status as a real legal entity relative to the Canadian Hockey League?

Under which circumstances could the Canadian Hockey League use Hockey Canada's insurance program?

There seems to be some legal uncertainty. Could you enlighten us?

[Barry F. Lorenzetti]

That's a very good point.

If I've understood correctly, Hockey Canada is responsible for the insurance program. The Canadian Hockey League's insurance is included in Hockey Canada's insurance program.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Based on our understanding of the case before us, the file was settled outside AIG Canada's insurance policy.

Do you know the reasons for settling the lawsuit so quickly?

[Barry F. Lorenzetti]

I think Hockey Canada clarified that at the beginning. Hockey Canada and the victims involved made the decision.

Hockey Canada asked AIG Canada's permission before settling the claim. AIG Canada agreed.

Hockey Canada would not have acted without getting AIG Canada's approval.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

As part of Carcillo's class-action lawsuit, do you know what roles the different insurance policies will play?

[The Chair, Liberal, Hedy Fry]

You have 30 seconds.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Who will be able to pay a settlement if there is one?

[Barry F. Lorenzetti]

That's a good question.

This has dragged on for years. I can't give you an answer to that question, because some parts of the claim are covered by insurance and some are not.