Delaying LTD benefits may be bad faith.
On September 17, 2014, the British Columbia Supreme Court refused to summarily dismiss an insured’s claim against the insurer and adjuster for breach of contract and the duty of fairness and good faith; however, the insured’s claims against the adjuster for inducement of breach of contract and interference with contractual relations were dismissed. In Frank v. Kalokina, 2014 BCSC 1866, the insured’s application for long-term disability benefits was denied by the adjuster for five months after the time of her claim. The insured alleges that in denying her claim, the adjuster and the insurer...
read morePunitive damages for denied LTD benefits upheld on appeal.
On March 22, 2013, an Ontario judge ordered an insurer to pay $100,000 in aggravated damages and $200,000 in punitive damages after finding that the insurer had wrongfully denied its insured long-term disability benefits. In Fernandes v. Penncorp, 2013 ONSC 1637, the Honourable Justice Peter Hambly ordered Penncord Life Insurance Company to pay the damages to an injured employee. Facts The facts of the case are rather straightforward. The plaintiff was a bricklayer who had his own company. That company was profitable and had employees. When the plaintiff got injured and was unable to work...
read moreDid Manulife make “deliberately false” statements?
On January 16, 2014, the Ontario Superior Court of Justice rejected an application by Manulife Financial to dismiss the action against it in Sells v. Manulife, 2014 ONSC 715. The judgment is found at: Sells v Manulife, 2014 ONSC 715. The plaintiffs in this action are former agents of Manulife. Their essential claim for their damages against Manulife is that Manulife made very serious but false and misleading statements regarding the plaintiffs’ work and practices while with Manulife which Manulife knew or ought to have known would make it impossible for the plaintiffs to obtain new...
read moreInsurer who honours policy may still breach the duty of good faith.
On February 25, 2013, the Ontario Court of Appeal substantially allowed an appeal from a lower court decision striking out numerous claims in a proposed class action relating to the sale and administration of four types of life insurance policies. In Kang v. Sun Life, 2013 ONCA 118, the Court of Appeal held that plaintiffs’ claims for breach of duty of good faith and fair dealing and for deceit and fraud were not mere reiterations of the plaintiffs’ claim for negligent and fraudulent misrepresentation and should be allowed to stand. Their claim for breach of contract was based on...
read moreEmployer ordered to pay $100,000 punitive damages.
On January 31, 2013, the British Columbia Court awarded an employee $100,000.00 in punitive damages as a result of the defendant employer’s conduct, which was found to be malicious and vindictive, in breach of its obligations of good faith and fair dealing in the manner in which the employee was terminated. The employer’s egregious conduct continued “unbroken” throughout the legal proceeding. The Court awarded punitive damages against the employer to punish, denounce, and deter future actions, which included: 1. The employer refused to pay the employee’s outstanding wages unless a release...
read moreInsurer pays $100,000 punitive damages for alleging fraud.
On June 22, 2012, the Ontario Superior Court of Justice awarded $100,000 in punitive damages against an insurer for alleging fraud against its insured in respect of a fire loss in circumstances which the Court described as a “high-stakes litigation strategy”. Brandiferri v. Wawanesa Mutual Insurance Co. involved a fire loss at the insureds’ home. The garage and its contents were destroyed and smoke penetrated the house. In one action the insureds claimed that Strone Construction was liable for the deficient remedial work and in another action the insureds claimed that their...
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