The plaintiff pedestrian sought leave to amend a statement of claim arising from a motor vehicle accident to add the defendant driver’s insurer as a defendant and to seek declaratory relief regarding insurance coverage.
The insurer denied coverage and argued that under s. 258(1) of the Insurance Act a plaintiff cannot sue an insurer until judgment is obtained against the insured.
The court held that while the statute prevents a direct claim for payment before judgment, it does not preclude a claim for declaratory relief regarding coverage between interested parties.
Given the broad jurisdiction to grant declarations and the goals of efficient and proportionate litigation, the proposed amendments were legally tenable and would allow earlier resolution of the coverage dispute.
Leave to amend was therefore granted with the exception of a paragraph seeking a declaration that the insurer was obligated to pay any judgment.