This was the trial of a plaintiff/insured’s claim against his automobile insurer solely based on an allegation of bad faith. The issue was whether the insurer was liable to the insured for punitive, intangible, and aggravated damages where the insurer had paid out all coverages under the policy. The Court held that there was a breach of the duty of good faith, and regardless of whether the insurance claims were ultimately satisfied the plaintiff’s damages were compensable. The Court refused to award punitive damages, but awarded nominal damages for intangible and aggravated losses. The Court rejected the argument of the insurer, based on previous case law, that a plaintiff must have a successful action for some specific coverage under the policy before an action can succeed for bad faith.
22. November 2004 0
Baudisch v. Co-operators General Insurance Co.,  A.J. No. 1456, Alberta Provincial Court