The applicant insurer sought leave to appeal a motion judge's decision refusing to strike portions of the respondent's statement of claim.
The respondent, a child passenger in a vehicle driven by her mother, sued the mother's statutory accident benefits insurer for damages arising from the insurer's denial of the mother's claim, alleging breach of contract, bad faith, and negligence resulting in the loss of her mother's care and guidance.
The Divisional Court granted leave to appeal, finding good reason to doubt the correctness of the motion judge's conclusions that the respondent could claim mental distress damages for breach of a peace of mind contract, that the insurer owed the respondent a duty of good faith regarding her mother's claim, and that the alleged harm was foreseeable in tort.
