Ryan v. Sun Life Assurance Company

Ryan v. Sun Life Assurance Company

The Court held the clause was effective as backdated and applies; the insurer’s net recovery is limited to the portion of the settlement fairly attributable to past income loss and to loss of future earning capacity (interest and costs included), and the insurer cannot claim reimbursement for damages unrelated to income loss nor for benefits that accrue after the date the insured received the recovery.

Citation
2005 NSCA 12
Parties
Appellant; Respondent by Cross Appeal: Leslie Susan Ryan; Respondent; Appellant by Cross Appeal: Sun Life Assurance Company of Canada
Court
Nova Scotia Court of Appeal
Jurisdiction
Canada
Judgment Date
27 January 2005
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal and cross-appeal dismissed; no order as to costs.
Legal Topics
Subrogation Clauses, Reimbursement and Set Off, Effective Date of Policy Amendments, Allocation of Settlement Proceeds, Future Benefits Entitlement
Source Language
English
Insurance Law Contract Interpretation Personal Injury Law Subrogation and Reimbursement Subrogation Clauses Reimbursement and Set Off Effective Date of Policy Amendments Allocation of Settlement Proceeds +1 more

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Parties

Leslie Susan Ryan

Appellant; Respondent by Cross Appeal

Sun Life Assurance Company of Canada

Respondent; Appellant by Cross Appeal

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 What standard of review applies?
  2. 2 Does the subrogation clause apply despite being agreed after the accident?
  3. 3 Is the insurer entitled to reimbursement from the whole settlement or only amounts attributable to income loss?

Ratio Decidendi

The Court held the clause was effective as backdated and applies; the insurer’s net recovery is limited to the portion of the settlement fairly attributable to past income loss and to loss of future earning capacity (interest and costs included), and the insurer cannot claim reimbursement for damages unrelated to income loss nor for benefits that accrue after the date the insured received the recovery.

Court Disposition

Appeal and cross-appeal dismissed; no order as to costs.

Orders

  • Appeal dismissed.
  • Cross-appeal dismissed.