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Blue Cross Life must pay $1.5 million in punitive damages.

Posted by on Dec 20, 2023 in Bad Faith, Insurance, Legal Update | 0 comments

In a landmark decision, released on December 20, 2023, the Court of Appeal for Ontario has affirmed the groundbreaking $1.5 million punitive damages award by a Toronto jury in the case of Baker vs. Blue Cross Life Insurance Company of Canada, 2023 ONCA 842, solidifying the largest known punitive damages ever awarded in a Long-Term Disability (“LTD”) claim in Canada. “The Court’s endorsement underscores the significance of holding insurance companies accountable for their actions,” said Stephen Birman, lawyer from...

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Appeal Court upholds $1.5 million punitive damages against LTD insurer.

Posted by on Dec 20, 2023 in Bad Faith, Legal Update | 0 comments

In Baker v. Blue Cross Life Insurance Co. of Canada, [2023] O.J. No. 5748, 2023 ONCA 842, the Ontario Court of Appeal (“OCA”) upheld a $1.5 punitive damages award against a disability insurer, finding that it was warranted in the face of what appeared to be a systemic approach by the insurer’s claims handling team to ignore the insured’s rights under the policy. However, the court found that the trial judge erred in creating a new category of cases where full indemnity costs will automatically follow (although they were allowed on...

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Insurer punished for improperly withholding payment.

Posted by on May 3, 2022 in Bad Faith, Insurance, Legal Update | 0 comments

On May 3, 2022, the BC Supreme Court ordered that a homeowner’s insurer pay PUNITIVE DAMAGES for withholding payment of the undisputed parts of a fire loss claim. In Green Estate v. Sonnet Insurance Co., 2022 BCSC 709, an executor brought an application against the estate’s insurance company for breach of statutory condition 12 and breach of the implied duty of good faith in failing to indemnify the estate for losses arising out of a house fire.  Statutory condition 12 requires the insurer to pay or reject a claim 60 days after proof of...

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Appeal Court rules that not all bad faith attracts punitive damages.

Posted by on Nov 3, 2020 in Bad Faith, Insurance | 0 comments

On November 3, 2020, the BC Court of Appeal held that not all bad faith conduct will result in an award of punitive damages. In Gascoigne v. Desjardins Financial Security Life Assurance Co. (c.o.b. Desjardins Insurance), [2020] B.C.J. No. 1821, 2020 BCCA 316, the insured, an ICBC bodily injury adjuster, sued her disability insurer under her group benefits policy when her claim for long term disability benefits was denied. She developed inflammation of the tendons of her left elbow, requiring surgery, and subsequently developed depression. At...

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LTD Plan Administrator punished directly for bad faith claims handling.

Posted by on Oct 15, 2019 in Bad Faith, Insurance, Legal Update | 0 comments

On October 15, 2019, the BC Supreme Court ordered that an administrator of a long-term disability plan pay damages for mental distress, and punitive damages for its bad faith handling of a disability claim covered by a collective agreement. In Greig v. Desjardins Financial Security Life Assurance Co., 2019 BCSC 1758, Dennis Greig, who had suffered injuries in a motor vehicle accident, was re-injured on the job and was unable to return to work. He successfully applied for LTD benefits but his benefits were later suspended for 17 months before...

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Insurer must disclose internal documents in bad faith claim.

Posted by on Apr 29, 2019 in Bad Faith, Insurance, Legal Update | 0 comments

On April 29, 2019 the Nova Scotia Supreme Court ordered an insurance company to produce its policies, procedures, guidelines and internal documents concerning how an accident benefits claim was handled in a bad faith action. In Malloy v. Intact Insurance Co., [2019] N.S.J. No. 170, 2019 NSSC 131, Shauna Malloy was injured in a motor vehicle accident. Ms. Malloy’s insurance company, Intact, accepted the claim for accident benefits, but denied reimbursement for a medical procedure. Ms. Malloy sued alleging bad faith and sought an order...

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Sun Life ordered to pay $600,000 death benefit on “replaced” policy.

Posted by on Nov 22, 2018 in Insurance, Legal Update | 0 comments

On November 22, 2018, the Alberta Court of Queen’s Bench ordered an insurance company to pay a $600,000 death benefit to the 2 surviving children and adult partner of a deceased man, Jeffery Moss. In Moss v. Sun Life Assurance Co. of Canada, [2018] A.J. No. 1383, 2018 ABQB 953, the deceased’s daughter, Daniella Moss, brought a summary trial application seeking a declaration as to the validity of two insurance policies. She was one of the beneficiaries of the two life insurance policies on her father’s life. The deceased...

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Insurer may be sued for bad faith negotiations.

Posted by on May 17, 2018 in Bad Faith, Insurance, Legal Update | 0 comments

On May 17, 2018, the Manitoba Court of Appeal dismissed an appeal from an insurance company’s unsuccessful application for summary judgment to dismiss a claim brought by its insured. In 3746292 Manitoba Ltd. v. Intact Insurance Co., 2018 MBCA 59, the insured was the owner of a mixed-use property in downtown Winnipeg consisting of residential apartments and commercial space. In 2010, an accidental fire caused significant damage. A dispute arose over the cost of repairs and the amount of a co-insurance penalty. The parties negotiated a...

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Manulife ordered to pay disability benefits to brain injured man.

Posted by on Apr 19, 2018 in Insurance, Legal Update | 0 comments

On April 19, 2018, Ontario’s highest court ordered Manulife to pay long-term disability benefits to a man who suffered a traumatic brain injury and a severe back injury during a company-sponsored event on April 16, 2005. In  MacIvor v. Pitney Bowes Inc., [2018] O.J. No. 2105, 2018 ONCA 381, the Ontario Court of Appeal (“ONCA”), reversed a trial decision and found for Lenard MacIvor. Mr. MacIvor suffered a traumatic brain injury and a significant musculoskeletal injury during a company-sponsored event in Costa Rica. Mr....

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ICBC punished with costs for “improper act”.

Posted by on Feb 20, 2018 in Insurance, Legal Update | 0 comments

On February 20, 2018, the BC Supreme Court assessed costs against ICBC in Garayt v. Deneumoustier, 2018 BCSC 295, for failing to abide by “very clear case law”. By way of background, when a lawyer in British Columbia receives trust funds a $15 “trust administration fee” must be assessed. For a description of the fee program, click  here.  This is a mandatory assessment. So, when a plaintiff retains a lawyer to resolve a dispute with ICBC this fee needs to be paid.  If the plaintiff is successful, ICBC ought to...

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