TD General Insurance Company (TD) brought a motion for summary judgment to dismiss claims for punitive and aggravated damages by the plaintiffs, Mergim Imeri et al.
The claims arose from TD's initial handling of statutory accident benefits (SABS) following a motor vehicle accident, before Aviva Canada Inc. was determined to be the appropriate insurer.
TD argued that the plaintiffs failed to mediate these damages as a precondition and that their settlement of the SABS claim with Aviva precluded an independent action against TD.
The court dismissed the mediation argument due to TD's failure to plead it as a condition precedent in a timely manner.
However, the court granted summary judgment on the second ground, holding that the plaintiffs' settlement of their SABS claim with Aviva, which included a full and final release, resolved the underlying entitlement to benefits.
Since the claim for punitive and aggravated damages against TD flowed directly from the alleged wrongful denial of benefits, and that underlying issue was settled, there was no longer a basis for the claim against TD.
The claim against TD was dismissed.
