Damages for mental distress allowed for failure to pay statutory accident benefits

Court of Appeal upheld award of damages for mental distress in relation to a claim for statutory accident benefits.

McQueen v. Echelon General Insurance Co., [2011] O.J. No. 4563, October 18, 2011, Ontario Court of Appeal, E.E. Gillese, R.P. Armstrong and A. Karakatsanis JJ.A.

This case concerned an appeal following a seven-day trial with respect to a claim for statutory accident benefits. The insured alleged that the insurer refused to pay her certain benefits, and sought damages for mental distress, and bad faith conduct. Following the trial, the trial judge awarded the insured housekeeping benefits, transportation benefits, the cost of three assessments under s. 24 of the Statutory Accident Benefits Schedule, which requires an insurer to pay reasonable fees charged for among other things, the preparation of assessments and reports by members of a health profession, damages for mental distress, and interest. On appeal, the insurer challenged all but the interest award.

The Court of Appeal dismissed the appeal with the exception of ordering a variation in the amount awarded for transportation benefits. In doing so, the Court of Appeal found that damages for mental distress were available to the insured notwithstanding the fact that it was the insured’s husband who was the named insured and the policy related to statutory accident benefits.

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

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