The respondent insured received long-term disability benefits from the applicant insurer while appealing a denial of WSIB benefits.
The policy allowed the insurer to deduct 100% of WSIB benefits from the disability payments and required the insured to reimburse any overpayment.
When the WSIB appeal succeeded, the insured's counsel withheld a portion of the retroactive WSIB payment for legal fees.
The insurer brought an application to recover the gross WSIB amount.
The court granted the application, finding the policy language unambiguous and rejecting arguments based on unjust enrichment and the 'made whole' doctrine.
