The plaintiff sued her former spouse alleging that he fraudulently misappropriated life insurance proceeds payable to her following the death of their child in a motor vehicle accident.
The defendant had deposited both insurance cheques into the parties’ joint bank account and used the funds for joint expenses and investments while the plaintiff was hospitalized.
The court found the plaintiff to be an unreliable witness and accepted the defendant’s evidence that the funds were used with the plaintiff’s knowledge and consent.
The court further held that the claim was statute-barred under the Limitations Act and that a broad mutual release contained in the parties’ separation agreement extinguished any such claims.
The action and the defendant’s counterclaim were dismissed.
