The plaintiff's motel/restaurant complex was partially destroyed by fire, leading to an insurance claim with INTACT.
The insurer delayed payment for nearly three years, driven by an unsubstantiated arson investigation and adversarial conduct, including misleading Crime Stoppers ads.
The plaintiff sued for breach of contract, replacement cost, lost profits, and punitive damages for bad faith.
The court found INTACT breached its duty of good faith by prolonging the investigation without reasonable grounds and delaying payment.
The plaintiff was awarded an increased replacement cost (conditional on rebuilding), lost profits for the period of delay, and significant punitive damages for the insurer's high-handed conduct.
