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BILL NO. 32

                                              Government Bill

                 
                                                               
              3rd Session, 56th General Assembly
                         Nova Scotia
                   44 Elizabeth II, 1995-96

                 
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                 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




                          CHAPTER 20
                       ACTS OF 1995-96




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


                 
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
          AS ASSENTED TO BY THE LIEUTENANT GOVERNOR
                       JANUARY 11, 1996






                 
                                                               
                           Halifax
          Printed by Queen's Printer for Nova Scotia
                               
                               
                               
                               
                               
                  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  Section 104 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

            (a) striking out "any other body having similar objects"
         in the fifth line of clause (a) and substituting "the Facility
         Association"; and

            (b) adding immediately after clause (e) the following
         clause:

                (ea)     "Facility Association" means the Facility
            Association continued under the Compulsory
            Automobile Insurance Act (Ontario) and includes any
            successor to it;


         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 be a participant
         in and be subject to the terms and conditions of the Facility
         Association plan of operations which will 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 Sec
  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, 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,

                            (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 no
         other insurance, or 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 regis-
         tered 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 plain-
         tiff'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 judg-
                ment 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, accord-
                ingly, 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 and
                fifty 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.