Ont. court OKs class-action suit against insurance co.
20-Aug-2003, 06:13 PM
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Ont. court OKs class-action suit against insurance co.
"LONDON, Ont. (CP) -- Thousands of Ontario drivers may qualify for refunds following an Ontario Superior Court ruling certifying a class-action lawsuit against the Co-Operators General Insurance Co.
Ontario Superior Court Justice Roland Haines also certified similar class-action lawsuits against more than 20 other insurance companies.
The decision affects people whose cars were written off in accidents and who had to pay their deductibles.
In 2001, the Ontario Court of Appeal ruled an insurance company cannot take a wrecked car as well as charge the deductible; it can take either one, but not both.
On March 8, 2002, the Supreme Court of Canada refused to hear an appeal by the Co-Operators, meaning the Appeal Court decision stands.
With 88,000 Ontario vehicles being written off every year, thousands of people may qualify for the class-action suit, said Paul Downs, a London, Ont., lawyer leading the case.
"Everyone who was charged is entitled to a refund," he said. "Probably more than half of the 88,000 people can claim a refund."
There are still some legal details to be ironed out.
Haines ruled that people affected one year before the lawsuit was filed in October 1999 are entitled to a refund.
Downs is trying to extend that period to six years, so anyone charged after October 1993 would qualify.
"Achieving this certification is a major step," he said. "It's been almost four years since we filed the case."
At first, a judge refused the lawsuit, but Downs appealed the decision and won. Since then, about 200 motions have been argued about the particulars of the case.
"The court's ruling is a victory for consumer protection," Downs said. "This ruling means that class actions can be used to get compensation for thousands of drivers."
In most cases, the compensation will be a refund of the deductible that was charged, usually between $300 and $1,000, Downs said.
Haines also certified a claim for punitive damages against the insurance company.
"The punitive damages claim is based on the Co-Operators charging the deductibles when it knew it was wrong to do so," Downs said.
The Co-Operators stopped charging deductibles to Ontario customers in March 2002.
Sharon Bros, vice-president of claims, said then the company had never charged a deductible when the loss of the vehicle was not the customer's fault and taking the wrecked vehicle was simply a service the company provided.
Company officials could not be reached for comment Aug 19."
(London Free Press)
http://www.autonet.ca/AutonetStories...m?StoryID=9211
Ontario Superior Court Justice Roland Haines also certified similar class-action lawsuits against more than 20 other insurance companies.
The decision affects people whose cars were written off in accidents and who had to pay their deductibles.
In 2001, the Ontario Court of Appeal ruled an insurance company cannot take a wrecked car as well as charge the deductible; it can take either one, but not both.
On March 8, 2002, the Supreme Court of Canada refused to hear an appeal by the Co-Operators, meaning the Appeal Court decision stands.
With 88,000 Ontario vehicles being written off every year, thousands of people may qualify for the class-action suit, said Paul Downs, a London, Ont., lawyer leading the case.
"Everyone who was charged is entitled to a refund," he said. "Probably more than half of the 88,000 people can claim a refund."
There are still some legal details to be ironed out.
Haines ruled that people affected one year before the lawsuit was filed in October 1999 are entitled to a refund.
Downs is trying to extend that period to six years, so anyone charged after October 1993 would qualify.
"Achieving this certification is a major step," he said. "It's been almost four years since we filed the case."
At first, a judge refused the lawsuit, but Downs appealed the decision and won. Since then, about 200 motions have been argued about the particulars of the case.
"The court's ruling is a victory for consumer protection," Downs said. "This ruling means that class actions can be used to get compensation for thousands of drivers."
In most cases, the compensation will be a refund of the deductible that was charged, usually between $300 and $1,000, Downs said.
Haines also certified a claim for punitive damages against the insurance company.
"The punitive damages claim is based on the Co-Operators charging the deductibles when it knew it was wrong to do so," Downs said.
The Co-Operators stopped charging deductibles to Ontario customers in March 2002.
Sharon Bros, vice-president of claims, said then the company had never charged a deductible when the loss of the vehicle was not the customer's fault and taking the wrecked vehicle was simply a service the company provided.
Company officials could not be reached for comment Aug 19."
(London Free Press)
http://www.autonet.ca/AutonetStories...m?StoryID=9211
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