Mr. Fergus McDonald carries on business as a sole proprietorship with the business name The Frugal Scot.

The vehicle that was involved in the accident, a 1998 GMC truck, is registered to Fergus R B McDonald The Frugal Scot as the owner, and TipTop Transport Ltd. is registered as the owner of the licence plate.

Mr. McDonald purchased the vehicle from TipTop Transport, and he paid for it in bi-weekly installment payments.

The vehicle was used pursuant to an Independent Contractor Agreement between TipTop Transport and the Frugal Scott.

Under the Agreement, among other things, the contractor and his drivers agreed not to operate the vehicle exclusively for TipTop Transport and not to use it for personal use. The contractor agreed to enroll in TipTop Transports fleet public liability and property damage and cargo insurance coverage. The Frugal Scott paid about $3,770 per year for insurance.

Newday Insurance issued a motor vehicle liability policy to TipTop Transport as named insured, which provided coverage for all vehicles owned, registered, leased, and or operated on behalf of the named insured. Mr. McDonald was not a named insured nor was he a listed driver.

TipTop Transport issued a driver manual setting out rules and guidelines applicable to TipTop Transport drivers, and under the Independent Contractor Agreement, the contractor agreed to operate the vehicle in accordance with the laws of the Province of Ontario and rules and regulations as may be required by TipTop Transport.

The Frugal Scott paid $22.00 bi-weekly for Ontario base plates to TipTop Transport.

The vehicle had the TipTop Transport name and logo on both sides and the rear of the box and doors of the cab.

TipTop Transport assigned the pick-ups and deliveries for which the vehicle was to be used.

The Frugal Scott received 75% of the revenues generated by the vehicle and TipTop received 25%.

On April 4, 2010, Mr. McDonald was injured when he jumped on the running board of his truck, which was then being operated by another driver, who was moving the vehicle to another place on the parking lot.

At the time of the accident, Mr. McDonald was an owner-operator (an independent contractor) and he was not an employee of TipTop Transport. He had at one time been an office employee of TipTop Transport.

Mr. McDonald was a named insured on a motor vehicle liability policy issued by Security National with respect to his personal use vehicle, a 2005 PT Cruiser.

Security National took the position that Newday Insurance Company was the insurer responsible for payment of the accident benefits. It disagreed and their dispute proceeded to arbitration.

The arbitration proceeded before Arbitrator Lee Majors with viva voce evidence, documentary evidence and some agreed facts.

Relying on Axa Insurance v. Newday Insurance Company of Canada, Arbitrator Majors ruled in favour of Newday Insurance, and Security National appealed.

McDonald became impatient waiting for the arbitration to be completed and tweeted a series of derogatory remarks about Majors competence as an arbitrator.

What could have been done to avoid the problems?