An action for bad faith may be severed from the underlying action disputing entitlement to insurance benefits

Insurer’s application for bifurcation of bad faith claim granted.

Cort v. Insurance Corp. of British Columbia, [2011] B.C.J. No. 853, May 5, 2011, British Columbia Supreme Court, Master P. Keighley

The insured’s pickup truck was destroyed by fire. The insured had purchased fire insurance coverage from the insurer, ICBC. Frustrated by the lack of progress on his claim, the insured started an action seeking indemnity pursuant to the contract of insurance, plus punitive, exemplary and aggravated damages for breach of the duty of good faith.

The insurer brought an application bifurcating the insured’s claims for damages for breach of contract and indemnity from the claims for punitive, exemplary and aggravated damages and various other relief. The insurer’s application for bifurcation was granted.

This case was digested by Cameron B. Elder and edited by David W. Pilley of Harper Grey LLP.

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