Business Interruption Insurance Class Action
Koskie Minsky and the Merchant Law Group have commenced a proposed national class proceeding alleging that Canadian insurance companies have breached their contracts with business owners, and other duties, by refusing to pay for business interruptions caused by the coronavirus pandemic.
The certified “Class” includes all individuals and businesses, in Canada, except those in Quebec, who :
(i) contracted with a Defendant (other than a Lloyd’s Defendant) for Business Interruption Insurance;
(ii) on or before August 31, 2021, made a claim under their Business Interruption Insurance policy for losses due to:
(A) the actual or suspected infection of staff, agents, customers or other persons with the SARS CoV-2 virus or its variants at the insured premises or within such proximity as may be specified in the insured’s Business Interruption Insurance policy;
(B) the actual or suspected presence of the SARS CoV-2 virus or its variants on the insured premises; or
(C) the order of a civil authority regarding the SARS CoV-2 virus or its variants; and
(iii) were denied insurance coverage for those losses by any of the Defendants.
If you are interested in participating in the class action, please contact us at
Toll Free: 1-866-777-6335 or Email: businessinterruptionclassaction@kmlaw.ca
The following insurance companies are sued in this proposed class action:
- CERTAS HOME AND AUTO INSURANCE COMPANY,
- CO-OPERATORS GENERAL INSURANCE COMPANY,
- CONTINENTAL CASUALTY COMPANY,
- ECONOMICAL MUTUAL INSURANCE COMPANY,
- FEDERATED INSURANCE COMPANY OF CANADA,
- GORE MUTUAL INSURANCE COMPANY,
- INTACT INSURANCE COMPANY,
- CERTAIN UNDERWRITERS AT LLOYD’S SUBSCRIBING TO POLICY NO. LNP2210, CERTAIN UNDERWRITERS AT LLOYD’S SUBSCRIBING TO POLICY NO. SR040046, CERTAIN UNDERWRITERS AT LLOYD’S SUBSCRIBING TO POLICY NO. GASS1300,
- NORTHBRIDGE GENERAL INSURANCE CORPORATION,
- NOVEX INSURANCE COMPANY,
- ROYAL & SUN ALLIANCE INSURANCE COMPANY OF CANADA,
- SGI CANADA INSURANCE SERVICES LTD.,
- THE DOMINION OF CANADA GENERAL INSURANCE COMPANY,
- THE WAWANESA MUTUAL INSURANCE COMPANY, and
- WYNWARD INSURANCE GROUP
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Latest Developments
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July 3, 2024
The Plaintiffs will not be seeking leave to appeal to the Supreme Court of Canada and will focus on litigating the balance of the case.
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June 14, 2024
The Court of Appeal for Ontario dismissed the Plaintiffs’ appeal from the decision of Justice Penny, dated June 5, 2023. The Court’s Reasons for Decision can be viewed here.
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June 12, 2024
The Plaintiffs’ appeal from the decision of Justice Penny, dated June 5, 2023, was heard by the Court of Appeal for Ontario.
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January 19, 2024
The appeal has been scheduled for June 12, 2024, in Toronto. Additional details will be posted here closer to that date.
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July 11, 2023
The Plaintiffs have filed a Notice of Appeal to the Court of Appeal for Ontario and this Notice can be viewed here.
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July 4, 2023
The Plaintiffs have filed a Notice of Appeal to the Court of Appeal from Ontario from the decision of Justice Penny, dated June 5, 2023. The appeal remains to be scheduled.
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June 5, 2023
Justice Penny released his decision on the common issue trial, ruling in favour of the Defendants on two out of three certified common issues and declining to address the third. Please see the complete Reasons for Decision posted in the Documents section of this webpage. The Plaintiffs intend to appeal.
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March 27, 2023
A trial of the certified common issues took place between February 6, 2023 and March 10, 2023, before the Honourable Justice Penny.
Justice Penny reserved his decision, to be released at a later date.
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August 9, 2022
The deadline to opt out of this class action has passed on August 8, 2022.
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May 9, 2022
The Court has approved Notice to all Class Members of this class action’s certification. Please review the complete Notice here.
If you are a Class Member and you wish to participate in the class action, you do not need to do anything right now.
If you are a Class Member, but you do not wish to participate in this class action, and you wish to keep your rights to sue any of the Defendants individually, you must remove yourself from the Class before the deadline of August 8, 2022. Please read the Notice for more information.
The Plaintiffs will now proceed to trial on behalf of the Class to determine the Court’s answers to three certified Common Issues. Trial is scheduled to begin February 2023 and the tentative timetable leading up to trial is available here. Once the trial of these Common Issues is resolved, the Plaintiffs can proceed to certify any remaining common issues and proceed to try those.
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April 21, 2022
The Court certified this action against the Certain Underwriters at Lloyd’s Subscribing to Policy No. LNP2210 and Certain Underwriters at Lloyd’s Subscribing to Policy No. GASS 1300, on consent. The Court also dismissed the action against Certain Underwriters at Lloyd’s Subscribing to Policy No. SR040046, on consent. The Court’s Order can be found here.
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January 27, 2022
A Fresh as Amended Statement of Claim was filed with the Court, and a copy is available here.
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August 31, 2021
On August 20, 2021, Justice Belobaba partially certified this action as a class proceeding, against all Defendants except for the Lloyd’s Defendants, on three “Common Issues”. The Common Issues concern how “physical loss or damage” language in business interruption insurance policies should be interpreted.
The Plaintiffs will now proceed to trial on behalf of the Class to determine the Court’s answers to three certified Common Issues. Once the trial of these Common Issues is resolved, the Plaintiffs can proceed to certify any remaining common issues and proceed to try those.
A copy of the complete Certification Order is available here.
Notice of certification and opt-out procedures will be posted on this website when they are available.
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March 11, 2021
Following the resolution of the carriage hearing on January 6 and 15, 2021, this action will proceed against all Defendants with the exception of the Aviva Defendant.
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July 6, 2020
This class action was commenced by Notice of Action.
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July 3, 2024
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Documents
- June 14, 2024 Reasons for Decision
- July 11, 2023 Notice of Appeal
- June 5, 2023 Reasons for Decision
- May 12, 2022 Timetable of Pretrial Steps
- May 12, 2022 Position Statement of the Plaintiffs on the Certified Common Issues
- May 9, 2022 Position Statement of the Defendants on the Certified Common Issues
- May 9, 2022 Certification Notice
- April 21, 2022 Certification Order (Lloyds)
- January 27, 2022 Fresh As Amended Statement of Claim
- August 31, 2021 Certification Order (Partial)
- September 17, 2020 Amended Statement of Claim
- July 6, 2020 Notice of Action
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FAQS
What is a class action?
A class action is a lawsuit which provides a method for a large group of people with common claims to join together to advance one large claim. Class actions are a more efficient and cost-effective way for groups of people with common claims to gain access to the legal system and seek justice.
What does certification mean?
In order for an action to proceed as a class action, the court must determine whether it is appropriate for the case to be treated as a class action. Some of the factors the courts consider are the extent to which the claims of the class
members are common, and whether a class action is preferable to other methods (such as individual actions) of advancing the issues. The decision as to whether a class action should be certified takes place at a certification hearing and is decided by a judge. If certified, a representative plaintiff will advance the action on behalf of all of the class members.How do I know if I am a Class Member?
The certification order will always contain a description of who is a class member. We post the certification orders in our actions so that you can review them. You do not need to “sign up” to become involved in a class action. If you are included in the class description, you are automatically a class member who will be affected by the outcome of the class action unless you decide to “opt out”.
Are Class Members notified of the certification of the class proceeding?
Yes. After the claim has been certified, the court will authorize notice to be given to the members of the class.
Can I opt out of a class action and pursue independent legal action?
Yes. When a class action is certified, class members are always given an opportunity to opt out of the action. A deadline is imposed for opting out. If you do not opt out by the given deadline, class members will be bound by the outcome of the class action, whether it is successful or unsuccessful. If you opt out, you will not receive any benefit if the action is successful.
Will there be any cost to class members for legal fees?
Typically, class actions are handled on a contingency fee basis, which means that the class action lawyers will be paid only if the class action is successful at trial or settled. In that case, class counsel fees may be paid by the defendants or out of the settlement or judgment proceeds as approved by the court. In addition, the plaintiff may seek funding assistance from the Class Proceeding Fund which, if funding is granted, may provide funding for disbursements.
I still have questions…
Please feel to contact us by using the contact information on this site.
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Contacts
