At Avize, we’re dedicated to standing up for individuals when insurance companies fail to honour their commitments. In a landmark case, we successfully represented a client whose long-term disability benefits were unfairly denied by Desjardins. We not only reinstated his benefits but also achieved the largest aggravated damage award for mental distress in Canadian legal history.
Background of the Case
Our client, Mr. Greig, was a dedicated employee who, due to severe medical conditions, found himself unable to continue working. Relying on his long-term disability (LTD) insurance policy with Desjardins, he rightfully sought the benefits he was entitled to. However, in April 2015, Desjardins terminated his LTD benefits, citing insufficient medical evidence, a decision that created undue stress, hardship, and suffering for our client.
Legal Journey and Challenges
Despite Mr. Greig providing comprehensive medical documentation to prove his disability, Desjardins remained steadfast in their refusal to provide the benefits Mr. Greig not only needed but was rightfully entitled to. Such conduct not only exacerbated our client’s condition but also confirmed Desjardins’ blatant disregard for the duty of good faith that insurers owe their policyholders.
Court’s Findings and Rationale
At the Supreme Court of British Columbia we strategically provided evidence to the court outlining Mr. Greig’s entitlement to benefits and Desjardins’ unacceptable conduct in their handling of his claim. The court agreed with our submissions and found that Desjardins failed to assess Mr. Greig’s claim in a fair and balanced manner, neglecting to properly consider the medical evidence presented. This conduct was deemed an egregious breach of the insurer’s duty of good faith, warranting judicial intervention.
Significant Damages Awarded
The court ruled in our favour, awarding our client $250,000 in additional damages—$50,000 for the undue distress caused by Desjardins’ conduct (aggravated damages) and $200,000 to penalize Desjardins for their misconduct (punitive damages). This constituted the largest aggravated damage award to date ever awarded in Canada—underscoring the seriousness of the insurer’s actions and sending a powerful message to insurers in the country that such behaviour will not be tolerated.
Desjardins appealed the decision—alleging that the trial judge made an error in awarding punitive damages and that the amount of damages awarded was unreasonably high. The BC Court of Appeal unanimously rejected Desjardins’ appeal and upheld the trial judge’s decision in favour of our client—confirming that at Avize, our results not only set precedents but also withstand the scrutiny of judges at the Court of Appeal.
Broader Implications
This ruling sends a clear message to insurance companies about the paramount importance of acting in good faith and honouring their contractual obligations to their insured. At Avize, we view this ruling as a testament to our dedication to holding insurers accountable and ensuring that our clients receive the justice and support they deserve.
If you or someone you know is facing unjust treatment from an insurance provider, we’re here to help. Our experienced team is committed to advocating for your rights and guiding you through every step of the legal process.