2 total
Insurer ordered to pay substantial trial costs after rejecting settlement and contesting liability.
Following a jury trial arising from a motor vehicle accident that resulted in a damages award exceeding $1 million, the court addressed post‑trial issues of costs and pre‑judgment interest.
The statutory third party insurer had denied coverage but fully participated in the litigation under s. 258 of the Insurance Act.
The court held that the insurer’s litigation positions and refusal to accept the plaintiff’s settlement offers necessitated the lengthy trial and justified significant cost consequences.
Pre‑judgment interest under the Courts of Justice Act was awarded as claimed.
The court fixed costs in favour of the plaintiffs, including partial indemnity costs to trial and substantial indemnity costs thereafter.
Judgment creditor may seek directions and disclosure on insurer’s denial of coverage.
Following a jury trial awarding damages exceeding $1 million for injuries arising from a motor vehicle accident, the plaintiffs sought directions regarding their ability to pursue recovery against the defendant driver's insurer, which had denied coverage and participated in the action as a statutory third party under s. 258(14) of the Insurance Act.
The insurer argued the plaintiffs lacked standing to seek directions and that any claim for insurance proceeds must be brought by a fresh action.
The court held that the judgment creditor effectively stands in the shoes of the insured for purposes of addressing coverage issues and may participate in determining whether relief from forfeiture or coverage applies.
Requiring a new statement of claim would be inefficient where the insurer had fully participated in the litigation and suffered no prejudice.
The court ordered disclosure of the insurer’s basis for denying coverage and directed that the issue proceed by motion before the trial judge.
