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Mandatory interlocutory injunction for disability benefits set aside due to lack of proven irreparable harm.
The defendant insurer appealed an order granting a mandatory interlocutory injunction that required it to pay periodic disability benefits to the plaintiff pending trial.
The Divisional Court allowed the appeal and set aside the order, finding that the motions judge erred in concluding the plaintiff would suffer irreparable harm.
The Court held that social stigma, loss of dignity, and potential loss of residence were not supported by the evidence as constituting irreparable harm in this context, and that the policy did not provide for ongoing future benefits without proof of continuing disability.
Mandatory interlocutory injunction for disability benefits set aside as plaintiff failed to prove irreparable harm.
The plaintiff, who claimed to suffer from chronic fatigue syndrome, was denied long-term disability benefits by the defendant insurer.
The plaintiff commenced an action and successfully moved for a mandatory interlocutory injunction requiring the insurer to pay periodic disability benefits and arrears until trial.
The insurer appealed.
The Divisional Court allowed the appeal and set aside the injunction, finding that the motions judge erred in concluding the plaintiff would suffer irreparable harm.
The majority held that the plaintiff's financial hardship and potential loss of dignity did not constitute irreparable harm, as damages would be an adequate remedy if the plaintiff succeeded at trial.