John I. Laskin

An insurer sought to amend its statement of defence approximately nine years after a fire destroyed the insured's restaurant to assert that the insured had deliberately set the fire, rather than relying on its original defence of non-cooperation with the fire investigation.

The motion judge dismissed the amendment motion and awarded substantial indemnity costs.

The Court of Appeal upheld the dismissal of the amendment but reduced the costs award, finding that while the insurer's delay was inordinate and triggered a presumption of prejudice that was not rebutted, the conduct did not rise to the level of egregious misconduct warranting substantial indemnity costs.