Alfred M. Kwinter Q.C.

In an addendum to its previous reasons, the Court of Appeal corrected a calculation error by the trial judge, reducing the damages owing to the respondents for building loss by $152,262.67 to account for payments made to mortgagees.

The Court also dismissed the respondents' late application for prejudgment interest on the $50,000 aggravated damages award, noting that while aggravated damages are compensatory and ordinarily attract prejudgment interest, the issue was raised too late in the proceedings.

The appellant insurance company denied the respondents' claims for fire loss, alleging arson.

A jury found in favour of the respondents, awarding compensatory, aggravated, and punitive damages, and finding the insurer acted in bad faith.

The insurer appealed on multiple grounds, including the admissibility of settlement offers, character evidence, and the availability of punitive damages to an estate under the Trustee Act.

The Court of Appeal dismissed the appeal on liability and punitive damages, holding that the Trustee Act permits an estate to recover punitive damages.

However, the Court reduced the aggravated damages award from $175,000 to $50,000, finding the original amount grossly excessive.