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Counsel for an insurer was disqualified from acting in a tort action after representing the insurer in the plaintiff's accident benefits claim.
The plaintiff brought a motion to disqualify Benjamin Dillon and his firm from acting for the defendant TD Home & Auto Insurance Company ("TD Insurance") in a tort action.
The plaintiff had previously provided confidential information to TD Insurance during an accident benefits claim, where TD Insurance was in a fiduciary relationship with the plaintiff.
The court applied the principles of conflict of interest, particularly from *MacDonald Estate v. Martin*, *Dervisholli v. Cervenak*, and *Ascani v. Ascani*.
It was held that despite internal firewalls within the insurance company, the same lawyer being privy to confidential information from both the accident benefits and tort claims created a disqualifying conflict of interest.
The motion to disqualify counsel was granted.
The court fixed the plaintiff's costs and disbursements and ordered the defendants to pay them equally following the acceptance of Rule 49 offers.
The plaintiff, involved in two motor vehicle accidents, accepted Rule 49 offers from two sets of defendants.
The court was tasked with determining the appropriate award of partial indemnity costs and disbursements, and their apportionment between the defendants.
The court fixed partial indemnity costs at $37,500 plus HST and disbursements at $45,000 inclusive of HST, and ordered the defendants to pay these costs equally, rather than proportionally to their settlement offers.
