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  • Reconsideration of Claim and Liability for Overpayment

    II. Principles of Law

    (c) Reconsideration of Claims and Collection of Overpayments

    Section 43 of the Employment Insurance Act confers upon the Commission the right to claim repayment of benefits wrongly paid to a claimant. These provisions impose a duty on a claimant to repay an overpayment and set out the procedure for recovery of an overpayment.

    Calder v. M.E.I., [1980] 1 F.C. 842 (F.C.A.) A-233-79
    Vachon v. C.E.I.C., [1985] 2 S.C.R. 417 (S.C.C.)File No. 17252 A-436-80

    However, the Commission's right to establish and recover its debt results from the interaction of the legislative provisions governing reconsideration of claims and those governing collection of overpayments of benefits. The sections are closely related and cannot be separated. It is these provisions alone which deal with the right to recover overpayment of benefits and the prescription of debts. These are questions of substantive law and not of procedure. The Commission is only entitled to recover an overpayment where it complies with both sets of provisions.

    Canada (A.G.) v. Laforest [1988], F.C.J. No. 546 (F.C.A.) A-607-87
    Briere v. C.E.I.C., [1989] 3 F.C. 88 (F.C.A.) A-637-86

    Section 52 of the Employment Insurance Act provides for four operations. The Commission may at any time in a specific period reconsider a claim for benefits. If it decides that a claimant has received money to which he or she was not entitled or alternatively, has not received money to which he or she was entitled, the Commission must calculate the amount due or payable and notify the claimant. The Commission has thirty-six months, or seventy-two months if a false and misleading statement is involved, to reconsider a claim. If it decides during this period that an amount of money is owing to it or is payable by it, then it must, still within this period, calculate the amount and notify the claimant of its decision.

    Briere v. C.E.I.C., [1989] 3 F.C. 88 (F.C.A.) A-637-86
    Brien v. C.E.I.C., April 23, 1997, F.C.J. No. 492 (F.C.A.) A-425-96

    If the Commission fails to reconsider a claim within the prescribed time period, it cannot later try to recover the overpayment during the course of another benefit period.

    Canada (A.G.). v. Von Findenigg, [1984] 1 F.C. 65 (F.C.A.) A-737-82

    Overpayments may be recovered by either filing a certificate in the Federal Court; commencing an action in any other court of competent jurisdiction; deducting the amount from any benefit payable to the claimant; or, garnishment.

    Subsections 47(1) and (2) , section 126 Employment Insurance Act

    Canada (A.G.) v. Laforest [1988], F.C.J. No. 546 (F.C.A.) A-607-87

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    2010-03-04