This was an application by the Defendant Insurer for bifurcation of a trial for breach of contract following the denial of long-term disability benefits, and a claim of breach of good faith and fair dealing. The Plaintiff Insured claimed a breach of good faith both in considering the claim for long-term disability benefits, and the Insurer’s conduct in continuing to deny the claim after litigation was commenced. The court ordered bifurcation, and held that the post-litigation allegations necessarily raised issues about the advice taken by counsel. The Insurer would have to retain new counsel and may require the breach of privileged communications. Prejudice to the Insurer outweighed that which would be suffered by the Insured by the delay and expense of two trials.
20. February 2005 0
Stuart v. The Manufacturers Life Insurance Company et al,  B.C.J. No. 729, Supreme Court of British Columbia