Demetriou v. AIG Insurance Company of Canada

Demetriou v. AIG Insurance Company of Canada

The motion judge erred by denying the insurer leave to amend and by excluding consideration of suspicious circumstances; because credibility and proof of loss were squarely in issue, the summary judgment could not stand and the matter requires a trial; accordingly the summary judgment, punitive damages and costs awards were set aside and amendment was permitted.

Citation
2019 ONCA 855
Parties
Plaintiff (respondent): James Demetriou; Defendant (appellant): AIG Insurance Company of Canada
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
29 October 2019
Procedural Posture
Civil Appeal / Court of Appeal Decision on Appeal From Summary Judgment
Outcome
Appeal allowed; summary judgment set aside; punitive damages and indemnity costs vacated; amendment to plead fraud permitted; matter remitted for trial on credibility and proof of loss.
Legal Topics
Summary Judgment, Pleading Amendment, Burden of Proof, Insurance Fraud, Bad Faith, Punitive Damages, Costs
Source Language
English
Insurance Law Civil Procedure Appeal Summary Judgment Pleading Amendment Burden of Proof Insurance Fraud Bad Faith +2 more

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Parties

James Demetriou

Plaintiff (respondent)

AIG Insurance Company of Canada

Defendant (appellant)

Procedural Posture

Civil Appeal / Court of Appeal Decision on Appeal From Summary Judgment

Legal Issues

  1. 1 Whether the motion judge erred in denying the insurer leave to amend pleadings to plead fraud or deliberate act exclusions
  2. 2 Whether the motion judge erred by granting summary judgment without considering suspicious circumstances bearing on credibility and proof of loss
  3. 3 Whether the insured bore the burden to prove theft under the policy despite insurer raising credibility concerns

Ratio Decidendi

The motion judge erred by denying the insurer leave to amend and by excluding consideration of suspicious circumstances; because credibility and proof of loss were squarely in issue, the summary judgment could not stand and the matter requires a trial; accordingly the summary judgment, punitive damages and costs awards were set aside and amendment was permitted.

Court Disposition

Appeal allowed; summary judgment set aside; punitive damages and indemnity costs vacated; amendment to plead fraud permitted; matter remitted for trial on credibility and proof of loss.

Orders

  • Order of the motion judge set aside
  • Punitive damages vacated