An insurer moved under Rule 51.05 of the Rules of Civil Procedure for leave to withdraw admissions in its statement of defence that the plaintiff was entitled to statutory accident benefits.
After discovery evidence suggested there may have been no collision between the insured vehicle and a school bus, the insurer sought to deny that a motor vehicle accident occurred and to dispute coverage under the Statutory Accident Benefits Schedule.
Applying the three-part test for withdrawal of admissions, the court found that the proposed amendment raised a triable issue, that the insurer provided a reasonable explanation for the change in position based on new discovery evidence, and that any alleged prejudice to the plaintiff was speculative.
The court also rejected an argument that the insurer was estopped from denying entitlement due to past benefit payments.
Leave to amend the statement of defence was granted.