The appellant insurer appealed a jury verdict awarding the respondent insured disability benefits, aggravated damages, and punitive damages following the denial of a disability claim.
The Court of Appeal allowed the appeal and directed a new trial, finding fatal defects in the trial judge's charge to the jury.
Specifically, the charge on aggravated and punitive damages was wholly inadequate, failing to explain the legal requirements or direct the jury to relevant evidence.
Furthermore, the trial judge erred in law by instructing the jury that a six-year limitation period applied for breach of contract rather than the one-year limitation period mandated by the insurance policy, and failed to instruct the jury on the discoverability principle.