Ontario court finds insurance contract “read as a whole” provides for alternative methods of proceeding where terms of contract are in dispute

Insurer’s motion for a stay of proceedings based on an arbitration clause in the insurance policy was dismissed because the declarations endorsement provided for proceeding by way of an action. Insurance law – Policies and insurance contracts – Interpretation of policy – Terms of policy – Arbitration provision; Actions – Stay of proceedings Trade Finance ...

Loss suffered by restaurant owners excluded under insurance policy’s Freezing Exclusion

Damage to the insureds’ restaurant was caused by two freezing incidents and was excluded from coverage by the freezing exclusion which provided that there was no insurance for loss or damage caused directly or indirectly by freezing. Insurance law – All-risk insurance – Exclusions – Policies and insurance contracts – Interpretation of policy; Practice – ...

BCSC exercises its discretion to award costs on a full indemnity basis in LTD insurance dispute

14. March 2017 0
The plaintiff insured was awarded solicitor-client costs against the defendant disability insurer. Insurance law – Disability insurance – Long term disability – Terms of policy – Rights and duties of insured; Costs – Special or increased costs; Third party action Tanious v. Empire Life Insurance Co., [2017] B.C.J. No. 85, 2017 BCSC 85, British Columbia Supreme Court, January 19, ...

Insurer has duty to defend in pollution exclusion claim

14. March 2017 0
Because the pleading did not allege sufficient facts about how the pollution escaped from the insured’s underground storage tanks, there was a possibility that the claim fell within the exception to the pollution exclusion clause and the insurer had a duty to defend the insured. Insurance law – Commercial general liability insurance – Umbrella policies ...

Ontario court dismisses insurer’s application for order compelling insured to undergo neuropsychological testing

10. February 2017 0
The insurer’s application for an order compelling the insured to undergo neuropsychological testing was dismissed as neuropsychological or cognitive function had not been put at issue and no treatment providers or experts had recommended it. Woolsey v. Industrial Alliance Insurance and Financial Services Inc., [2016] O.J. No. 6497, 2016 ONSC 7617, Ontario Superior Court of ...

Disabled employee not entitled to payments until age 65 despite insurer’s previous agreement to continue paying outside of contract of insurance

10. February 2017 0
The insurer’s agreement to continue paying disability benefits to a previously disabled employee did not amount to a contract of insurance obligating the insurer to continue payments until age 65 after the insurer ceased acting as the employer’s insurance provider. Bozek v. Fenchurch General Insurance Co., [2016] B.C.J. No. 2699, 2016 BCSC 2370, British Columbia ...

Ontario judge dismisses liability insurance claim determining that possessory rights to chattels do not constitute property

10. February 2017 0
Possessory rights to chattels do not constitute property within the meaning of section 132(1), R.S.O. 1990, c. I.8. Benedict v. Continental Casualty Co., [2016] O.J. No. 6016, 2016 ONSC 7205, Ontario Superior Court of Justice, November 23, 2016, F. Kristjanson J. This action arose out of a coverage dispute triggered by an underlying action for ...

Automobile insurer who assumes liability under contract of insurance for storage fees is subrogated to the rights of its insured

10. February 2017 0
An automobile insurer that provides coverage for vehicle storage fees is a “person lawfully entitled” to apply for relief under section 24 of the Ontario Repair and Storage Liens Act, R.S.O. 1990, c. R.25. 2237466 Ontario Inc. (c.o.b. 409 Collision Centre (2011)) v. Intact Insurance, [2016] O.J. No. 6336, 2016 ONSC 7711, Ontario Superior Court ...

Supreme Court of Canada confirms that litigation privilege cannot be abrogated absent express statutory provision

10. January 2017 0
Litigation privilege cannot be abrogated absent express statutory provision; s. 337 of the Act Respecting the Distribution of Financial Products and Services does not provide such express provision. Lizotte v. Aviva Insurance Co. of Canada, [2016] S.C.J. No. 52, 2016 SCC 52, Supreme Court of Canada, November 25, 2016, B. McLachlin C.J. and R.S. Abella, T.A. Cromwell, M.J. Moldaver, A. ...

In BC no-fault Part 7 benefits are distinct from compensation awarded on the basis of fault or liability in tort

10. January 2017 0
Part 7 benefits under the Insurance (Motor Vehicle) Act and its Regulations are not compensation from a person whose acts have caused or are alleged to have caused disability. Brugger v. IWA – Forest Industry Long Term Disability Plan (Trustees of), [2016] B.C.J. No. 2353, 2016 BCCA 445, British Columbia Court of Appeal, November 15, 2016, M.E. Saunders, H. ...