A number of similar class actions have been commenced against various Canadian property and casualty insurers alleging that, for many years, those insurers improperly included Harmonized Sales Tax (HST) in the calculation of benefits limits proscribed by law for personal injury losses occasioned by automotive accidents. It is alleged further that these insurers acted in contravention of certain policy directives of the relevant industry regulator. That industry regulator has similarly been included in these actions for its alleged failure to ensure that these insurers acted in accordance with those directives. The defendants were successful in obtaining a dismissal of all claims against the insurer defendants on the basis that the Court does not have jurisdiction over the proposed class actions. The result was upheld on appeal.
This matter is significant in (i) setting the boundaries of the relevant jurisdiction for disputes of this nature, and in (ii) the consideration of the proper interpretation of the legislative scheme where there is a divergence of view between the industry and the industry’s regulator with regard to the relevant statutory provisions.
Fasken acts for four major insurers being pursued in these actions and is taking a significant role in the defence, with a team comprised of Paul Martin, Sarah Armstrong and Daanish Samadmoten.
Jurisdiction
- Ontario
