TORONTO, Aug. 22, 2003 (PRIMEZONE) -- Class actions against more than two dozen automobile insurers have been certified under the Class Proceedings Act, 1992, in a decision of the the Honourable Mr. Justice Roland Haines of the Ontario Superior Court of Justice released August 14, 2003.
The lawsuits involve insurance deductibles withheld by the defendant insurers for cars written off as a result of collision, theft, fire or vandalism. The class includes any person in Ontario, insured by one of the defendants, whose car was written off and who paid a deductible.
Also included in the class, are individuals who meet the requirements of the class but received, from the insurer, a refund of their deductible within the one year prior to the filing of the claim against that insurer.
In his judgment, Mr. Justice Haines wrote that "(i)n these cases, there are potentially thousands of relatively modest claims that arise from a long-standing practice that was common throughout the insurance industry. I agree with the submission of the plaintiffs that this case is, in those respects, the very type of case that the (Class Proceedings Act) was intended to embrace."
Future proceedings against other insurance companies are planned. The potential for suits to be filed against insurers is the result of the 2001 decision of the Ontario Court of Appeal in McNaughton Automotive Limited v. Co-Operators General Insurance Company. In that case, the Court of Appeal found that policyholders whose cars are written off should get the actual cash value of their vehicle and that no deductible be applied.
Koskie Minsky is counsel for the plaintiffs. Koskie Minsky is widely acknowledged as one of Canada's pre-eminent firms specializing in class actions, litigation, trade union law and pension and benefits.
For further information, please contact:
Koskie Minsky Kirk M. Baert Tel: 416-595-2117 Fax: 416-204-2889
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca