News + Insights

The Court of Appeal dismissed an appeal by Aviva Insurance Company of Canada and its affiliates, which had sought to stay both a class action and related individual actions involving the cancellation of pandemic outbreak coverage under "Triple Guard" insurance policies sold to dentists and dental corporations. The Court of Appeal ultimately declined to interfere with the motion judge's decision not to grant the requested stays of proceedings, and affirmed the partial settlement of a COVID-19 business interruption insurance class action against Aviva.

At the heart of the appeal was Aviva's argument that it was entitled to a stay of proceedings because it did not receive timely disclosure of a partial settlement between the class representative plaintiff and CDSPI, as required by the now-defunct Handley Estate framework. The Court of Appeal rejected this position, affirming the motion judge's holding that the partial settlement disclosure regime does not apply in the class action context. The Court reasoned that the Class Proceedings Act, 1992 contains its own comprehensive settlement approval process that facilitates disclosure of partial settlements in class proceedings, thereby achieving the policy goals underlying Rule 49.14. 

The Court of Appeal further rejected Aviva's claims of deceit, concealment, and abuse of process, finding that Aviva had received timely—and arguably immediate—disclosure of the class settlement and was a full participant in the approval hearing. The Court of Appeal ultimately upheld the motion judge's approval of the settlement, including a bar order precluding Aviva from claiming over against CDSPI, finding no real or practical economic prejudice to Aviva.

The appeal was dismissed in full, representing a significant win for our clients.