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BILL NO. 32

                                              Government Bill

                 
                                                               
              3rd Session, 56th General Assembly
                         Nova Scotia
                    44 Elizabeth II, 1995

                 
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                 An Act to Amend Chapter 231
                of the Revised Statutes, 1989,
              the Insurance Act, and Chapter 293
                of the Revised Statutes, 1989,
                    the Motor Vehicle Act










                 
                                                               
                                                               
               The Honourable Eleanor E. Norrie
           Minister of Housing and Consumer Affairs


                 
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                             
                 
                                                               
                           Halifax
         Printed by Queen''s Printer for Nova Scotia
                               
                               
                               
                       Explanatory Note








         This Bill provides that on and after July 1, 1996, every motor vehicle liability policy shall
provide for payment by the insurer of all sums that

            (a) an owner or passenger falling within the definition of a "person insured under
         the contract" set out in the proposed clause 139(1)(b) in Clause 3 of the Bill is legally
         entitled to recover from the owner or driver of an uninsured automobile or unidentified
         automobile as damages for bodily injury resulting from an accident involving an
         automobile;

            (b) a person is legally entitled to recover from the owner or driver of an
         uninsured automobile or unidentified automobile as damages for bodily injury to or the
         death of a person insured under the contract resulting from an accident involving an
         automobile; and

            (c) an owner or passenger falling within the definition of a "person insured under
         the contract" is legally entitled to recover from the identified owner or driver of an
         uninsured automobile as damages for accidental damage to the insured automobile or its
         contents, or to both the insured automobile and its contents, resulting from an accident
         involving an automobile.

At present, motor vehicle liability policies do not provide such coverage and any person making
such a claim may not claim against an insurer but must obtain a judgment against the party at
fault and make a claim against Judgment Recovery (N.S.) Ltd.  This Bill restricts applications
to Judgment Recovery (N.S.) Ltd. for recovery of judgments to those judgments for damage
occasioned by or arising out of the operation, ownership, maintenance or use of a motor vehicle
before July 1,1996.

         In addition, this Bill provides that on and after July 1, 1996, a person who is involved in
an automobile accident who does not have access to such coverage or who has other insurance
that is inadequate may apply for payment of the claim to the Facility Association but that no such
person may apply for payment of damage to an automobile owned by or registered in that
person's name if, at the time of the accident, that person was driving the automobile or had the
care or control of it.



                  An Act to Amend Chapter 231
                 of the Revised Statutes, 1989,
               the Insurance Act, and Chapter 293
                 of the Revised Statutes, 1989,
                     the Motor Vehicle Act



         Be it enacted by the Governor and Assembly as follows:


         1  Clause 104(a) of Chapter 231 of the Revised Statutes, 1989, the Insurance Act, as
amended by Chapter 14 of the Acts of 1992, is further amended by striking out "any other body
having similar objects" in the fifth line and substituting "the Facility Association".


         2  Section 106 of Chapter 231 is amended by adding immediately after subsection (1)
the following subsection:

            (1A)    Every insurer carrying on the business of automobile insurance in the
         Province shall provide, in accordance with Sections 139A to 139U, payment with respect
         to claims for damages made by persons who are not insured under a contract within the
         meaning of Section 139 and who have no other insurance or have other insurance that is
         inadequate, with respect to the damages claimed, and shall, in accordance with this Act
         and the articles of association or by-laws of a plan to which subsection (1) applies,
         establish and implement a plan of operation and carry out its obligations in the Province
         with respect to that plan of operation.


         3  Section 139 of Chapter 231 is repealed and the following Sections substituted:

            139 (1) In this Section,

                    (a) "insured automobile" means the automobile as defined or
                described in the contract;

                    (b) "person insured under the contract" means

                        (i)  in respect of a claim for damage to the insured
                    automobile, the owner of the automobile,

                        (ii) in respect of a claim for damage to the contents of the
                    insured automobile, the owner of the contents,

                             (iii)     in respect of a claim for bodily injury or death,

                            (A) any person while driving, being carried in or upon
                        or entering or getting on to or alighting from the insured
                        automobile,

                            (B) the insured named in the contract and, if residing
                        in the same dwelling premises as the insured named in the
                        contract, the insured's spouse and any dependent relative,

                                (I)  while driving, being carried in or upon or
                            entering or getting on to or alighting from an uninsured
                            automobile,

                                (II) who is struck by an uninsured or unidentified
                            automobile, but does not include a person struck while
                            driving, being carried in or upon or entering or getting on
                            to or alighting from railway rolling stock that runs on
                            rails,

                            (C) if the insured named in the contract is a
                        corporation, unincorporated association or partnership, any
                        director, officer, employee or partner of the insured named in
                        the contract, for whose regular use the insured automobile is
                        furnished and, if residing in the same dwelling place, the
                        insured's spouse and any dependent relative,

                                (I)  while driving, being carried in or upon or
                            entering or getting on to or alighting from an uninsured
                            automobile, or

                                (II) who is struck by an uninsured or unidentified
                            automobile, but does not include a person struck while
                            driving, being carried in or upon or entering or getting on
                            to or alighting from railway rolling stock that runs on
                            rails,

                        if such director, officer, employee or partner or the spouse of
                        that director, officer, employee or partner is not the owner of an
                        automobile insured under a contract;

                    (c) "unidentified automobile" means an automobile with respect to
                which the identity of either the owner or driver cannot be ascertained;

                    (d) "uninsured automobile" means an automobile with respect to
                which neither the owner nor driver of it has applicable and collectable bodily
                injury liability and property damage liability insurance for its ownership, use
                or operation, but does not include an automobile owned by or registered in
                the name of the insured or the insured's spouse.

                (2) Every contract evidenced by a motor vehicle liability policy shall
         provide for payment by the insurer of all sums that


                    (a) a person insured under the contract is legally entitled to recover
                from the owner or driver of an uninsured automobile or unidentified
                automobile as damages for bodily injuries resulting from an accident
                involving an automobile;

                    (b) a person is legally entitled to recover from the owner or driver
                of an uninsured automobile or unidentified automobile as damages for bodily
                injury to or the death of a person insured under the contract resulting from
                an accident involving an automobile; and

                    (c) a person insured under the contract is legally entitled to recover
                from the identified owner or driver of an uninsured automobile as damages
                for accidental damage to the insured automobile or its contents, or to both
                the insured automobile and its contents, resulting from an accident involving
                an automobile,

         subject to the terms, conditions, provisions, exclusions and limits prescribed by regulation.

                (3) A dependent relative referred to in the definition "person insured under
         the contract" in subsection (1) who

                    (a) is the owner of an automobile insured under a contract; or

                    (b) sustains bodily injuries or dies as the result of an accident while
                driving, being carried in or upon or entering or getting on to or alighting
                from the dependent relative's own uninsured automobile,

         is not a dependent relative for the purpose of this Section.

                (4) The Governor in Council may make regulations

                    (a) prescribing, amending or altering the terms, conditions,
                provisions, exclusions and limits with respect to payments under subsection
                (2);

                    (b) deeming any term, condition, provision, exclusion or limit as
                prescribed, amended or altered by a regulation made pursuant to clause (a)
                to be included in any motor vehicle liability policy made or renewed on or
                after the effective date of the regulation and in any motor vehicle liability
                policy that is subsisting on the effective date of the regulation;

                    (c) requiring that terms, conditions, provisions, exclusions and
                limits as prescribed, amended or altered by a regulation made pursuant to
                clause (a) be attached to or included in every motor vehicle liability policy as
                a schedule in or to the policy.

                (5) Any payments made or available to a person under a contract of
         insurance referred to in subsection (2) constitute, to the extent of such payments, a release
         by the person or the person's personal representative or any person claiming through or
         under the person or by virtue of the Fatal Injuries Act, of any claim that the person may
         have under subsection (2), but nothing in this subsection precludes an insurer from
         demanding, as a condition precedent to payment, a release to the extent of the payment
         from the person insured or the person's personal representative or any other person.

                (6) A release within the meaning of subsection (5) does not enure to the
         benefit of the person or persons against whom the insurer has a right to subrogation
         under this Act.

                (7) This Section applies to all contracts evidenced by motor vehicle liability
         policies made or renewed on or after July 1, 1996, and all contracts evidenced by motor
         vehicle liability policies that were subsisting on that day are deemed to provide for
         payments referred to in subsection (2) in respect of an accident arising out of the use or
         operation of an automobile occurring on or after that day.

                 139A   (1) Sections 139B to 139U apply only to matters arising out of accidents
         involving an automobile occurring on or after July 1, 1996.

                (2) Sections 139B to 139U apply only to a claim for damages by a person
         who is not insured under a contract within the meaning of Section 139 and who has other
         insurance that is inadequate, with respect to the damages claimed, and, subject to
         subsection (4), no person other than one who is not insured under a contract within the
         meaning of Section 139 and who has no other insurance, or who has other insurance that
         is inadequate, with respect to the damages claimed, may apply to the Facility Association
         for payment of damages in accordance with Sections 139B to 139U.

                (3) Notwithstanding any other provision of this Act, no person shall apply
         to the Facility Association pursuant to Section 139B or 139C for payment of damages in
         respect of damage to an automobile owned by or registered in the name of the person,
         notwithstanding that the person may have had no applicable and collectable insurance
         with respect to that automobile at the time of the accident in which the damage was
         incurred if, at the time of the accident, the person was driving the automobile or had the
         care or control of it, whether it was in motion or not.

                (4) Where a question arises between a person's insurer and the Facility
         Association as to whether a person is insured under a contract of insurance within the
         meaning of Section 139 or has other insurance with respect to the damages claimed, the
         person may, at the person's option, make a claim for damages against the insurer or
         apply to the Facility Association for payment of damages in accordance with Sections
         139B to 139U.

                (5) Where, in the circumstances described in subsection (4), a person elects
         to make a claim for damages against the person's insurer and liability is denied on the
         grounds that the person is not insured under a contract within the meaning of Section 139
         and has no other insurance with respect to the damages claimed, the person may proceed,
         in accordance with Sections 139B to 139U, to apply to the Facility Association for
         payment of damages.

                (6) Where, in the circumstances described in subsection (4) or (5), a person
         elects to apply, in accordance with Sections 139B to 139U, to the Facility Association for
         payment of damages and the Facility Association makes a payment to the person in
         accordance with those Sections, the Facility Association is subrogated to the extent of
         those payments to the rights of the person to whom the amount is paid and, where in the
         opinion of the Facility Association, the person is insured under a contract within the
         meaning of Section 139 or has other insurance with respect to the damages claimed, the
         Facility Association may bring an action in its name or in the name of such person against
         the insurer to recover the amount of the payment.

                (7) No payment made by the Facility Association in the circumstances
         described in subsection (6) bars the person to whom it is made from making a claim
         against the person's insurer for damages in excess of the amount of the payment by the
         Facility Association.

                 139B   (1) A person who would have a cause of action against an owner of an
         automobile or a driver of an automobile, other than an automobile owned by or under the
         care and control of that person, for damages for injuries to or the death of any person or
         damage to property, arising out of the operation, care or control of the automobile in the
         Province, except a person entitled to make application pursuant to Section 139C, may
         make application in a form provided by the Facility Association for payment by the Facility
         Association of the damages in respect of such death, personal injury or property damage.

                (2) Upon receipt of an application pursuant to subsection (1), the Facility
         Association shall, by registered mail, forward a notice of the application for payment by
         the Facility Association to the owner and the driver of the automobile against whom
         liability for the damages occasioned by the operation of the automobile is alleged, to their
         latest known addresses or to their latest addresses as recorded with the Registrar of Motor
         Vehicles.

                (3) The Facility Association may, in respect of an application made
         pursuant to subsection (1), make payment, subject to the same conditions, limits,
         deductions and exclusions that would apply to an application by a judgment creditor in
         accordance with Sections 139C to 139U, with the necessary modifications, of an amount
         that it considers proper in all the circumstances if

                    (a) the applicant executes a release under seal of all claims arising
                out of the automobile accident, subject to subsections (6) and (7) of Section
                139A, that occasioned the damages to be paid by the Facility Association;
                and

                    (b) subject to clause (c), the owner and driver of the automobile
                against whom liability for the damages occasioned by the operation of the
                automobile is alleged, execute a consent to the payment of the sum for
                damages by the Facility Association and also execute under seal an
                undertaking in a form provided by the Facility Association to repay to the
                Facility Association the amount to be paid by the Facility Association; or

                    (c) the person to whom a notice is sent in accordance with
                subsection (2) does not reply within thirty days of the date upon which the
                notice was sent either

                        (i) by mail, or

                        (ii)    by attending in person at the place named in the notice,

                and dispute liability to the person making application pursuant to subsection
                (1).

                (4) Where an amount is paid out by the Facility Association pursuant to
         subsection (3) or (5), the Facility Association shall, to the extent of the amount paid out,
         be deemed to be a creditor of every person against whom liability for the damages
         occasioned by the operation of the automobile is alleged and who was given notice
         pursuant to subsection (2), and upon the filing with a prothonotary of the Supreme Court
         of Nova Scotia of a certificate of the Facility Association in a form prescribed by the
         regulations stating the amount paid out, judgment may be entered in the name of the
         Facility Association as a judgment of the Supreme Court of Nova Scotia, and, without the
         consent of the Facility Association, no execution under a judgment obtained with respect
         to the damages referred to above shall be made by any person other than the Facility
         Association against the property of the judgment debtor until the judgment debt of the
         Facility Association is satisfied.

                (5) The Facility Association may, in its discretion, make interim payments
         to claimants claiming damages for personal injury where the responsible person or
         persons do not dispute their liability after a notice is sent to them in accordance with
         subsection (2).

                139C    Subject to Section 139H, where a person obtains in any court in the Province
         a judgment against

                (a) an owner of an automobile or a driver of an automobile, other than an
            automobile owned by or under the care or control of the person, for damages for
            injuries to or the death of any person or damage to property, arising out of the
            operation, care or control of an automobile in the Province; or

                (b) a party unknown as contemplated by Section 139K, for damages for
            injury to or the death of any person arising out of the operation, care or control of
            an automobile in the Province,

         upon the determination of all proceedings, including appeals, the person may apply to the
         Facility Association for payment of the amounts in respect of the judgment to which the
         person is entitled in accordance with Sections 139B to 139U.

                139D    The Facility Association shall pay out to the person the amount of the
         judgment including the costs included in the judgment, or that part of the judgment
         including the costs to which the person is entitled, if

                (a) the person makes an affidavit

                    (i) as to what amount the person has recovered or is or was entitled
                to recover from any source, for or in respect of any injury, death or damage
                to a person or property arising out of the operation, care or control of the
                automobile by the owner or driver of it against whom the judgment was
                obtained whether or not in the action damages were claimed for or in respect
                of the injury, death or damage and as to what compensation or services or
                benefits with a pecuniary value the person has recovered or received or is or
                was entitled to recover or receive for or in respect of the injury, death or
                damage, and

                    (ii)    that the application is not made by or on behalf of an insurer in
                respect of any amount paid or payable by the insurer by reason of the
                existence of a contract of insurance and that, subject to subsection (4) of
                Section 139A, no part of the amount sought to be paid by the Facility
                Association is sought in lieu of making a claim or receiving a payment that
                is or was payable by reason of the existence of a contract of insurance and
                that no part of the amount sought will be paid to an insurer to reimburse or
                otherwise indemnify an insurer in respect of any amount paid or payable by
                the insurer by reason of the existence of a contract of insurance; and

                (b) the solicitor for the person makes an affidavit

                    (i) that the judgment is a judgment as described in Section 139C,

                    (ii)    giving particulars of the amount of damages for or in respect of
                injury or death or damage to property and the costs included in the judgment,

                    (iii)   that in so far as the solicitor was advised by any person and
                learned of any facts during the litigation

                        (A) the solicitor, subject to subsection (4) of Section 139A, has
                    commenced action against all persons against whom the person might
                    reasonably be considered as having a cause of action for or in respect
                    of the injury, death or damage to person or property as described in
                    subclause (i) of clause (a),

                        (B) the application is not made by or on behalf of an insurer
                    in respect of any amount paid or payable by the insurer by reason of
                    the existence of a contract of insurance and that, subject to subsection
                    (4) of Section 139A, no part of the amount sought to be paid by the
                    Facility Association is sought in lieu of making a claim or receiving a
                    payment that is or was payable by reason of the existence of a contract
                    of insurance and that no part of the amount sought will be paid to an
                    insurer to reimburse or otherwise indemnify an insurer in respect of
                    any amount paid or payable by the insurer by reason of the existence
                    of a contract of insurance, and

                        (C) that except as disclosed in the applicant's affidavit, the
                    person is and was not entitled to recover, from any source, nor to
                    receive compensation or services or benefits with a pecuniary value,
                    for or in respect of any injury, death or damage to person or property
                    as described in subclause (i) of clause (a), and

                    (iv)    that the action was defended throughout to judgment or that
                there was a default or a consent or agreement by or on behalf of the
                defendant and that the solicitor complied with Section 139H; and

                (c) the affidavits together with

                    (i) a copy of the statement of claim,

                    (ii)    a certified copy of the judgment,

                    (iii)   the assignment of judgment, and

                    (iv)    where applicable, the solicitor's taxed bill of costs,

            are forwarded to the Facility Association.

                 139E   (1) Where, on an application to the Facility Association,

                    (a) all the documents required by Section 139D are not forwarded;

                    (b) any matter required to be in an affidavit is omitted;

                    (c) the amount requested to be paid by the Facility Association is, in
                its opinion, greater than the amount to which the applicant is entitled under
                Sections 139B to 139U; or

                    (d) for any reason, the Facility Association wishes the application
                for payment to go before a judge of the Supreme Court of Nova Scotia for an
                order for payment by the Facility Association,

         the Facility Association shall, within a reasonable period of time, advise the person of its
         objections to the application for payment and, subject to subsection (2), advise the person
         that the person must obtain an order of a judge of the Supreme Court of Nova Scotia for
         payment by the Facility Association.

                (2) The Facility Association shall advise the person to remedy any objection
         it may have against payment and, if the objection is remedied to the satisfaction of the
         Facility Association, it shall then make payment as hereinbefore provided.

                 139F   Where a person is advised that payment shall not be made except by order of
         a judge of the Supreme Court of Nova Scotia, the person may apply to a judge of the
         Supreme Court of Nova Scotia upon notice to the Facility Association, for an order
         directing payment by the Facility Association of the amount in respect of the judgment to
         which the person is entitled under Sections 139B to 139U.

                  139G  (1) A judge of the Supreme Court of Nova Scotia may make an order
         directed to the Facility Association requiring it, subject to Sections 139B to 139U, to pay
         the amount in respect of the judgment to which the judgment creditor is entitled in
         accordance with those Sections, if the applicant, in the application, satisfies the judge that

                    (a) the applicant has obtained a judgment as set out in Section 139C
                stating, whether against an owner, a driver or a party unknown, the amount
                of the judgment and the amount owing on the judgment at the date of the
                application;

                    (b) subject to subsection 139A(4), the applicant has commenced
                action against all persons against whom the applicant might reasonably be
                considered as having a cause of action for or in respect of any injury, death
                or damage to person or property arising out of the operation, care or control
                of the automobile by the owner or driver against whom the judgment was
                obtained;

                    (c) the applicant has prosecuted every action in good faith to
                judgment or dismissal;

                    (d) with respect to the amount to be paid, the applicant has not
                recovered and is and was not entitled to recover, from any source, any
                amount for or in respect of the injury, death or damage to person or property
                described in clause (b);

                    (e) with respect to the amount to be paid, the applicant has not
                received and is and was not entitled to receive from any source any
                compensation or services or benefits with a pecuniary value for or in respect
                of the injury, death or damage to person or property described in clause (b);

                    (f) the application is not made by or on behalf of an insurer in
                respect of any amount paid or payable by the insurer by reason of the
                existence of a contract of insurance, and that, subject to subsection (4) of
                Section 139A, no part of the amount sought to be paid out by the Facility
                Association is sought in lieu of making a claim or receiving a payment that
                is or was payable by reason of the existence of a contract of insurance and
                that no part of the amount sought will be paid to an insurer to reimburse or
                otherwise indemnify an insurer in respect of any amount paid or payable by
                the insurer by reason of the existence of a contract of insurance; and

                    (g) the amount sought to be paid out by the Facility Association does
                not exceed the maximum amount payable under Section 139Q.

                (2) The Facility Association may appear and be heard on the application
         referred to in subsection (1) and may show cause why the order should not be made.

                 139H   (1) Where an action is commenced and the defendant

                    (a) fails to file and serve a statement of defence;

                    (b) fails to appear in person or by counsel at an examination for
                discovery, trial or appeal or notifies the plaintiff that such failure is likely; or

                    (c) consents or agrees to the entering of judgment,

         no order may be made pursuant to Section 139G, and no money is required to be paid by
         the Facility Association in respect of a judgment obtained on such proceedings, unless
         before taking any further step in the proceedings, the plaintiff gives written notice, in the
         form prescribed by the regulations, to the Facility Association of such failure, notification,
         consent or agreement and affords it reasonable time to investigate the circumstances of
         the claim and an opportunity to take such action as it considers advisable pursuant to
         subsection (2).

                (2) Where the Facility Association receives notice pursuant to subsection
         (1), it may, if it considers it advisable, on behalf and in the name of the defendant, take any
         step to enforce the defendant's right to compensation or indemnity in respect of or arising
         out of the claim that is available to the defendant, and take any step in the proceedings,
         including a consent to judgment in such amount as it may consider proper in the
         circumstances, and all acts done in accordance with this subsection are deemed to be the
         acts of the defendant.

                 139I   (1) No money is required to be paid by the Facility Association in
         compliance with an order made pursuant to Section 139G until the judgment of the
         applicant or the portion of the judgment for which the Facility Association is liable or the
         applicant's interest in the judgment is assigned to the Facility Association.

                (2) Upon filing a copy of the assignment of judgment, certified by the
         Facility Association to be a true copy, with the registrar, prothonotary or clerk, as the
         case may be, of the court in which the judgment was obtained, the Facility Association
         shall, to the extent of the amount of the assignment, be deemed to be the judgment creditor.

                (3) Where execution is issued in the name of the judgment creditor and a
         copy of the assignment of judgment, certified in accordance with subsection (2), is filed
         with the sheriff having the execution order, subsection (2) applies mutatis mutandis.

                139J    Where injury to or the death of any person arises out of the operation, care
         or control of an automobile in the Province but the identity of the automobile, the owner
         and the driver of it cannot be established, any person who would have a cause of action
         against the owner or driver in respect of such injury or death may, upon notice to the
         Facility Association, apply to a judge of the Supreme Court of Nova Scotia for an order
         permitting the person to bring an action in the Supreme Court of Nova Scotia against a
         nominal defendant to be designated as a party unknown.

               139K A judge of the Supreme Court of Nova Scotia may make an order permitting
         the applicant to bring an action against a party unknown if satisfied that

                (a) there are reasonable grounds for bringing the action;

                (b) all reasonable efforts have been made to ascertain the identity of the
            automobile involved and of the owner and driver of it;

                (c) the identity of the automobile involved and of the owner and driver of
            it cannot be established; and

                (d) the application is not made by or on behalf of an insurer in respect of
            any amount paid or payable by reason of the existence of a contract of insurance,
            and that, subject to subsection (4) of Section 139A, no part of the amount sought to
            be recovered in the intended action is sought in lieu of making a claim or receiving
            a payment that is or was payable by reason of the existence of a contract of
            insurance and that no part of the amount so sought will be paid to an insurer to
            reimburse or otherwise indemnify the insurer in respect of any amount paid or
            payable by it by reason of the existence of a contract of insurance.

               139L (1) In any action brought against a party unknown pursuant to Sections
         139J and 139K, the Facility Association has all the rights of a defendant in the action, but
         nothing in this Section imposes any liability on the Facility Association.

                (2) In any action to which subsection (1) applies, the Facility Association
         may plead the general issue and give the special matter in evidence.

               139M (1) Where an action for damages for injury to or the death of any person,
         arising out of the operation, care or control of an automobile in the Province has been
         dismissed and the judge, in dismissing the action, states in writing that the injury or death
         arose out of the operation, care or control of an automobile

                    (a) the identity of which and the owner and driver of which is not
                established; or

                    (b) at a time when such automobile was, without the consent of the
                owner, in the possession of some person other than the owner and the identity
                of the driver is not established,

         Sections 139J and 139K apply for a period of three months from the date of such
         dismissal, notwithstanding any Act limiting the time within which an action may be
         brought.

                (2) Where, in accordance with subsection (1), an application is made
         pursuant to Section 139J, clause (c) of Section 139K does not apply.

               139N (1) Where an action for damages for injury to or the death of any person
         arising out of the operation, care or control of an automobile in the Province is
         commenced and the defendant by the pleadings alleges that the plaintiff's damage was
         caused by a party unknown, the plaintiff may make application to add the party unknown
         as a defendant and Section 139K applies mutatis mutandis.

                (2) This Section does not limit or restrict any right to add or join any
         person as a party to an action in accordance with the practice of the court in which the
         action is pending.

               139O (1) Where judgment has been obtained against a party unknown, the
         Facility Association may, at any time, bring action in the Supreme Court of Nova Scotia
         against any person for a declaratory judgment, declaring that person to have been, at the
         time of the accident, the owner or driver of the automobile in respect of the operation, care
         or control of which the judgment was obtained, and the court may give judgment
         accordingly.

                (2) Where a declaratory judgment is issued pursuant to this Section,

                    (a) the person declared in the judgment to be the owner or driver is
                deemed to have been the defendant in the action in which judgment was
                obtained against the party unknown and the judgment against the party
                unknown is deemed to be a judgment against such person; and

                    (b) the Facility Association is deemed to have obtained a judgment
                against such person for the amount of all moneys paid by it in respect of the
                judgment against the party unknown and, accordingly, has all the rights of
                a judgment creditor, including the right to recover any money that would
                have been payable in respect of the death or injury under any contract of
                insurance that was in force at the time of the accident, notwithstanding any
                Act limiting the time within which an action may be brought.

                (3) Where the injury or death arose out of the operation, care or control
         of the automobile at a time when the automobile was, without the owner's consent, in the
         possession of some person other than the owner, such action shall be disposed of in the
         same manner as though the identity of the owner had not been established.

               139P In an action against a party unknown, a judgment against a party unknown
         shall not be granted unless the court in which the action is brought is satisfied that all
         reasonable efforts have been made by the claiming party to ascertain the identity of the
         automobile and the owner and the driver of it and that such identity cannot be established.

               139Q (1) The Facility Association is not required to pay

                    (a) any amount in respect of a judgment in favour of a person who
                ordinarily resides outside the Province, unless such person resides in a
                jurisdiction that provides substantially the same benefits to persons who
                ordinarily reside in the Province, but no payment shall include an amount
                that would not be payable by the law of the jurisdiction in which such person
                resides;

                    (b) more than two hundred thousand dollars, exclusive of costs, for
                injury to or the death of one or more persons or damage to property resulting
                from any one accident occurring on or after July 1, 1996, except that
                payments with respect to damages for damage to property shall be limited to
                claims for damages in excess of two hundred thousand dollars,

         but, subject to subsection (2) and the regulations, where the judgment creditor recovers
         or is or was entitled to recover, from any source, for or in respect of any injury, death or
         damage to person or property arising out of the operation, care or control of the
         automobile by the owner or driver against whom the judgment was obtained whether or
         not in the action damages were claimed for or in respect of the injury, death or damage
         or where the judgment creditor receives or is or was entitled to receive, from any source,
         compensation or services or benefits with a pecuniary value for or in respect of the injury,
         death or damage, the amount so recovered or received and the amount that the judgment
         creditor is or was entitled to recover or receive and the amount of compensation and
         pecuniary value of any services or benefits received or that the judgment creditor is or was
         entitled to receive shall be deducted from the amount of damages included in the judgment
         and only the amount of damages included in the judgment after such deductions, or the
         maximum amount payable under clause (b), whichever is less, is required to be paid by
         the Facility Association.

                (2) In computing the amount payable by the Facility Association, no
         reduction shall be made

                    (a) with respect to any amount recovered or recoverable by the
                judgment creditor under a contract of life insurance, where the amount is
                payable in respect of the death of the person;

                    (b) with respect to any compensation or the pecuniary value of any
                services or benefits that the judgment creditor received, or is or was entitled
                to receive under the Social Assistance Act or the Health Services and
                Insurance Act;

                    (c) with respect to

                        (i) any amount recovered by the judgment creditor, or that
                    the judgment creditor is entitled to recover, from such sources as may
                    be prescribed by the regulations, or

                        (ii)    any amount of compensation, or the pecuniary value of
                    any benefits or services, received by the judgment creditor, or that the
                    judgment creditor is entitled to receive, from such sources as may be
                    prescribed by the regulations or where the compensation, benefits or
                    services are of a kind prescribed by the regulations.

                (3) For the purpose of this Section, the question of where a person
         ordinarily resides shall be determined as of the date of the accident as a result of which
         the damages are claimed.

               139R (1) Subject to Section 139B, no costs, other than costs taxed on a party and
         party basis, are required to be paid by the Facility Association.

                (2) Where an action has been maintained in part by an insurer and a part
         only of the amount of the judgment in the action is payable by the Facility Association,
         there shall not be paid by the Facility Association more than that part of the party and
         party costs of the action that bears the same ratio to the whole of such costs as the part
         of the judgment payable by the Facility Association bears to the total amount of the
         judgment.

            139S    The practice and procedure of the Supreme Court of Nova Scotia or the court
         in which the application or action is brought, including the right of appeal and the
         practice and procedure relating to appeals, apply to any application or action pursuant
         to Sections 139B to 139U.

            139T    No application for the payment of damages shall be made to the Facility
         Association by or on behalf of the Government of Canada or a province of Canada or the
         United States of America or a state of the United States or any political subdivision or
         corporation or agency of such Governments.

            139U    For the purpose of Sections 139B to 139T, all owners and drivers whose
         liability results in payment by the Facility Association are deemed to be sui juris and all
         actions taken by the Facility Association in the settlement of claims and actions on their
         behalf are deemed to be taken upon their instructions and with their full consent.

            139V    The Governor in Council may make regulations

                (a) generally respecting forms to be used for the purpose of Sections 139B
            to 139U and prescribing forms required to be prescribed;

                (b) prescribing sources for the purpose of subclause (i) of clause (c) of
            subsection (2) of Section 139Q;

                (c) prescribing, for the purpose of subclause (ii) of clause (c) of subsection
            (2) of Section 139Q, sources of compensation, benefits and services, and kinds of
            compensation, benefits, and services.


         4  Section 213 of Chapter 293 of the Revised Statutes, 1989, the Motor Vehicle Act, is
amended by adding immediately after subsection (1) the following subsection:

            (1A)    Notwithstanding subsection (1), no application for payment of a judgment may
         be made pursuant to that subsection where the judgment is recovered in an action for
         damages and the damages arose out of the operation, ownership, maintenance or use of
         a motor vehicle on or after July 1, 1996.