David Roebuck

The plaintiff sought a declaration that two life insurance policies had a cash surrender value exceeding $18 million and claimed damages for breach of contract and bad faith refusal to pay.

The insurer denied liability and counterclaimed, alleging the plaintiff participated in a fraudulent scheme with a senior company actuary to inflate policy values and withdraw funds far exceeding deposits.

After reviewing extensive accounting evidence and testimony, the court found the plaintiff’s evidence unreliable and accepted that the actuary had falsified documents and inflated values in exchange for bribes from the plaintiff.

The court concluded the plaintiff knowingly assisted a breach of fiduciary duty and committed civil fraud.

The policies were declared overdrawn and terminated, and the insurer was awarded damages equal to the misappropriated funds plus punitive damages.

The defendant insurer brought a motion to strike a jury notice in a complex insurance dispute involving allegations of fraud, breach of fiduciary duty, and disputed policy values.

The plaintiff sought declarations regarding the validity and terms of two life insurance policies and their cash surrender values, while also claiming substantial damages.

The court held that the core issues concerned the legal status and interpretation of the insurance agreements, constituting declaratory relief within the meaning of s. 108 of the Courts of Justice Act, which mandates that such claims be tried without a jury.

The court further found that the extensive factual issues, competing expert actuarial and forensic accounting evidence, and complex legal doctrines rendered the case unsuitable for jury determination.

The jury notice was therefore struck.