Article: are punitive damages insurable in canada
December 22, 2020 | Uncategorized
A pandemic. 670; Cooper-Stephenson, K. and Saunders, I., Personal Injury Damages in Canada. If the insured was not at least negligent, how can the conduct complained of be vindictive, willful or malicious to be worthy of attracting punitive damages? Damages awarded in a civil lawsuit in order to punish wrongdoing of a greater culpability than simple negligence, without regard to compensating the plaintiff’s actual loss. The leading cases on the award of punitive damages are two Supreme Court of Canada cases, both cited by Judge Yake in Wilderdijk-Streutker v Zhao (at paras 88-89). It is normally reserved for cases in which the insurance companies acted in manners that were especially egregious. In these times of social distancing and working from home, it’s become even more crucial to ensure strong cybersecurity measures are in place for you and your business. Binnie J. laid out the following principles in relation to punitive damages: (i) Unlike in Britain where there are only specific categories for punitive damages, in Canada punitive damages can be awarded to: Punish the defendant, Deter the defendant and others; Denounce the … Many observers hope that the Supreme Court may use this case to set a high water mark for punitive damages in an insurance action. The most often seen damages that are sought by victims of medical malpractice are punitive damages. There are two sources of punitive damages in Canada – the Common Law and statutes. The worst aspect of this harsh reality is that the insured wonders why his insurer is not fully supporting him. The formal distinction is that aggravated damages are given to compensate the plaintiff when the harm done to him by a wrongful act was aggravated by the manner in which the act was done; The trial jury found that Pilot had acted reprehensibly throughout the handling of the claims file and awarded punitive damages. Provide insurance coverage on all professional liability and CGL policies for defence costs for punitive damage claims. Keith and Daphne Whiten discovered a fire in their house as they were going to bed and escaped in their nightclothes in -18oC weather. Aggravated damages, as distinguished from punitive. by Jim Cameron of Cameron & Associates Insurance Consultants Ltd. Just before Christmas, the Supreme Court of Canada heard argument in the case of Whiten v. Pilot. Learn more and download a copy.. Pilot appealed the decision. Trans Canada Insurance Marketing (TCIM) is the proud recipient of the 2016 Five Star MGAs Award as published in Insurance Business Canada, Copyright © 2020. Not only do they dispute that a negligent error or omission was made, they vehemently dispute that they acted vindictively against the plaintiff. It seems that there is a growing trend to seek punitive damages from a defendant in almost any situation where a contractual duty of care or intentional conduct is argued. If the plaintiffs are successful, the court may award both punitive and compensatory damages. What is certain is that punitive damage claims are on the rise in Canada. Some policies specifically exclude coverage for punitive damages, while others rely on state laws. Both the Applicant and Respondent cited Stegenga v Economical Mutual Insurance Company 2 in their submissions as to whether the LAT has jurisdiction to award punitive damages. Wawanesa Mutual Insurance Co.2 and moving on to more recent decisions in which claims for aggravated or punitive damages were made, a review of the caselaw reveals that the courts remain fairly conservative in their approach to such claims, and that the upper end of punitive damages established in Whiten v. Currently, few insurance policies respond to claims for punitive damages. Allianz Global Corporate & Specialty launches U.S. cyber unit, Exclusion clause for ‘conversion’ in comprehensive auto policy ‘does not come close’ to being easily intelligible: Court, Aspen reports net income of US$76.8 million for Q2 2017, How the pieces of the puzzle fit together during a catastrophe. Historically, punitive damages were not available in Quebec civil law but are now provided for in certain legislation. By accepting this notice and continuing to browse our website you confirm you accept our Terms of Use & Privacy Policy. Insureds may even be willing to pay a small additional premium for this added protection and peace of mind. Some policies specifically exclude coverage for punitive damages, while others rely on state laws. What is certain is that punitive damage claims are on the rise in Canada. Punitive damages in Canada Punitive or exemplary damages are generally only available in Canada where there is proof of malicious conduct on the part of the defendant. The court did something similar in a trilogy of cases in 1978 that still imposes a ceiling on non-pecuniary general damage awards of $100,000 in 1978 dollars (now adjusted for inflation to slightly over $250,000). The claim for punitive damages was advanced on the basis that Canada Life acted so inappropriately punitive damages were required. Punitive (or “exemplary”) damages are different in that their purpose is not to compensate but to punish someone for bad behavior. The defence agreement usually already stipulates that the policy will defend frivolous and vexatious claims and other claims without merit. Canadian courts are generally careful in exercising their discretion to award these damages, which are an exception to the time-honored principle that civil damages seek to compensate the victim. As the term implies, “punitive” damages are meant to punish the offending party rather than to compensate the plaintiff. As an adjunct to the fundamental compensatory basis of personal injury damages awards, Canadian courts can also make non-compensatory awards in the form of exemplary or punitive damages in circumstances warranting censure and punishment of the defendant.2 Insurers now await the result of the appeal, wondering what impact the proliferation of punitive damage cases may have on the industry and if the unprecedented size of the Whiten award is a sign of things to come. Because they are usually paid in excess of the plaintiff's provable injuries, punitive damages are awarded only in special cases, usually under tort law, if the defendant's conduct was egregiously insidious. February 1, 2001 ( Hockley v. Working from home can pose its own challenges and takes adjusting to; the last thing anyone would want is a cyber breach to occur at the same time. Website Monitoring by BinaryCanary.com. Canadian punitive damage compensation: Some states prohibit insurance of punitive damages on the grounds that spreading the risk of punishment for willful misconduct lessens the deterrent effect. Money awarded in a civil lawsuit to make an injured person whole, including recompense for damaged property, lost wages or profits, pain, bereavement, medical expenses, etc. Your email address will not be published. The Attorney General of Canada and two RCMP officers were ordered by the Quebec Court of Appeal to pay $400,000 in punitive damages after they published and disseminated false information about a Laval couple who were wrongly charged in Canada’s first human trafficking case. Can he trust the counsel appointed by the insurer? compensation for a person’s out-of-pocket losses and future expenses due to injury, disability, disfigurement, pain and suffering, and all actual losses, whether economic or non-economic. exemplary / punitive damages, on the other, are intended to punish the defendant, and presumably to serve one or more of the objects of punishment – moral retribution or deterrence. To search a specific page press ctrl+f while in that page. And where punitive damages are concerned, Canadian courts usually can be characterized as follows. 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