Insurer must produce internal manuals in bad faith claim.
On August 12, 2016, the Alberta Court of Queen’s Bench confirmed that in an action for bad faith denial of disability benefits the insurer must produce details of its internal claims handling procedures to the plaintiff. In Alexander v Sun Life Assurance Company of Canada, 2016 ABQB 445, the plaintiff conducted an examination for discovery of a representative of Sun Life who explained that Sun Life makes an online databank of reference material available to its case managers to assist them in performing their job duties. She further explained that the reference material is broken down...
read moreICBC punished for alleging fraud.
On March 1, 2016, the BC Supreme Court ordered ICBC to pay $350,000 in punitive damages for malicious prosecution after alleging that the plaintiff acted fraudulently following a pedestrian collision. In Arsenovski v. Bodin, 2016 BCSC 359, the plaintiff was walking with her husband when he was struck by a vehicle. The plaintiff was not struck by the vehicle but did fall down and suffer some modest injuries during the incident and she reported this to ICBC. Specifically she told ICBC that “the last thing I remember was stepping off the curb to cross the street. I don’t know...
read moreCourt of Appeal finds the insurer acted in bad faith.
On November 17, 2015, the Nova Scotia Court of Appeal upheld awards of both aggravated and punitive damages against a long-term disability insurer, but reduced the aggravated damages to $90,000, and reduced the punitive damages to $60,000, in Industrial Alliance v Brine, 2015 NSCA 104. On June 18, 2014, the Supreme Court of Nova Scotia held, at 2014 NSSC 219, that the long-term disability insurer Industrial Alliance Insurance and Financial Services Inc. (“Industrial”) must account for years of unfair treatment of its insured, Bruce Brine. The court ordered Industrial to pay...
read moreManulife found guilty of fraudulent concealment.
A judge of the Alberta Court of Queen’s Bench found The Manufacturers Life Insurance Company (“Manulife”) guilty of fraudulent concealment in Atchison v. Manufacturers Life Insurance Company. The trial judgment is found at: Atchison v Manulife, 2002 ABQB 1121. Ms. Atchison’s husband was covered by a group life insurance policy with Manulife. He applied and paid for “excess” life insurance, in addition to his group coverage. The excess policy was issued, with coverage effective one month prior to his death in a boating accident. Manulife paid the widow on...
read moreICBC punished for fraud allegation.
On September 18, 2015, a judge of the BC Supreme Court found that that unproven allegations of fraud can be used as a factor to minimize a successful party’s costs entitlement after beating a formal offer. In Gupta v. Doe the plaintiff was involved in three separate collisions and sued for damages. At trial the plaintiff was awarded just over $43,000. Priro to trial ICBC made several formal offers, the first at $90,000 and the last at $164,000. Having beaten their formal offer by a considerable margin ICBC asked for post offer costs. The Court agreed that ICBC was entitled to post offer...
read moreBad faith claim leads to broad disclosure obligations.
Shirley Wade suffered injuries as a result of a motor vehicle accident in 2005. In 2008, her insurer, the Wawanesa Mutual Insurance Company, stopped paying her disability benefits. Wade started a lawsuit for breach of contract and bad faith against Wawanesa. During the discovery of Wawanesa’s representative on the bad faith claim, counsel for Wawanesa refused four requests for information, as follows: 1. During the 5 years before Wawanesa terminated Wade’s benefits, provide the number of policy holders who received income replacement benefits like Wade, provide the average length of time...
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