The defendant insurer brought a motion to strike part of a statement of claim that pleaded the defendant’s revenue and assets in support of a claim for punitive damages arising from the alleged wrongful cancellation of a life insurance policy.
The court considered Rules 25.06(1) and 25.11(b) of the Rules of Civil Procedure.
Applying the principles from Whiten v. Pilot Insurance Co., the court held that a defendant’s financial circumstances are only relevant to punitive damages in limited circumstances, none of which were pleaded.
Because no link was alleged between the defendant’s financial strength and the alleged misconduct, the pleading was irrelevant and risked expanding discovery unnecessarily.
The impugned sentence was therefore struck as frivolous and vexatious.