The liquidator of an insolvent insurance company brought a motion to approve settlement agreements with two tobacco companies.
The settlements included a condition requiring court approval of releases that would bar third-party claims against the insurer.
Several provincial Crowns and class action representatives opposed the settlements, arguing they had direct statutory claims against the insurer and were not bound by the Winding-Up and Restructuring Act (WURA).
The court held that the WURA does not expressly or implicitly bind the Crown, nor did the Crowns waive immunity under the benefit/burden doctrine as they had not yet made claims in the liquidation.
The motion to approve the settlements was dismissed.
