An employee who became disabled from employment as a police constable applied for long-term disability benefits under a group insurance policy issued by the respondent insurer.
When the insurer terminated the benefits, the employee sued the insurer for payment.
The motion judge struck the claim on the basis that the collective agreement governing the employee's employment granted exclusive jurisdiction over the matter to labour arbitration.
The Court of Appeal upheld the dismissal, finding that the collective agreement did more than merely oblige the employer to pay insurance premiums; it covered the terms, amount, and definition of disability benefits and made specific reference to the insurance policy.
Therefore, the employee's entitlement to benefits arose from the collective agreement, making the dispute arbitrable.
