Allegations of bad faith will be dismissed on a summary basis if there is no factual basis to the allegations.
The Insured ("Pearlman") brought a claim against the Insurer ("ACI") alleging that, amongst other things, ACI had acted in bad faith, deceitfully and fraudulently in handling Pearlman's claim for medical expenses related to a motor vehicle accident which occurred in British Columbia. ACI brought a Summary Trial Application to dismiss Pearlman's Action. The Summary Trial Judge dismissed the Application indicating that there were "valid questions" concerning ACI's conduct which he was unable to answer on the material before him. ACI appealed from this decision.
Pearlman v. American Commerce Insurance Co., [2009] B.C.J. No. 299, February 24, 2009, British Columbia Court of Appeal, L.S.G. Finch C.J.B.C., K.J. Smith and S.D. Frankel JJ.A.
The Insured ("Pearlman") brought a claim against the Insurer ("ACI") alleging that, amongst other things, ACI had acted in bad faith, deceitfully and fraudulently in handling Pearlman's claim for medical expenses related to a motor vehicle accident which occurred in British Columbia. ACI brought a Summary Trial Application to dismiss Pearlman's Action. The Summary Trial Judge dismissed the Application indicating that there were "valid questions" concerning ACI's conduct which he was unable to answer on the material before him. ACI appealed from this decision.
The Court found that there was no evidence tendered by Pearlman in support of the argument that ACI failed to act in good faith throughout or that it acted with anything less than the requisite degree of care for Pearlman's interest in processing his claim. Similarly, there was no evidence to support the allegations of deceit, fraud, abuse of process or misrepresentation. The Court found that there was sufficient evidence to find all the facts necessary to support ACI's Application for the dismissal of the Plaintiff's Action and that it would not be unjust for the Court to dismiss the Action.
In the result, the Court allowed ACI's appeal and dismissed Pearlman's Action.
This case was originally summarized by Jonathan D. Meadows and originally edited by David W. Pilley.
