News + Insights

On May 24, 2024, the Ontario Superior Court - Divisional Court released its reasons for judgment in Aviva Insurance Co. of Canada v. Freedman, 2024 ONSC 2886.

AGB partner, Gord McGuire, acted successfully for the insured owners of a dental practice, whose offices had suffered smoke and water damage in a fire. They had been insured under an all-risks policy. Gord successfully resisted the national insurance company's application for judicial review of the appraisal panel's decision ordering the insurer to replace, not just clean, their smoke-damaged equipment. 

The insurer had proposed to pay the insured only $58,400, being the estimated cleaning costs of the equipment, but the appraisal panel awarded the insured $1,700,000 to replace the items.  

On the application for judicial review, the insurer challenged the appraisal panel's jurisdiction, argued that the process had been procedurally unfair, and disputed the valuation of the equipment and contents.

The Ontario Superior Court - Divisional Court ultimately dismissed the application for judicial review, upholding the appraisal panel's decision, finding that the panel had not exceeded its jurisdiction and upholding the replacement cost and cash value determinations. The Divisional Court also dismissed the insurer's claims of procedural unfairness and ordered it to pay our clients' legal costs.

The case has been reported on in Canadian Underwriter magazine.