Court of Appeal Orders Insurance Company to Pay Interest on Overdue Judgment

Court of Appeal Orders Insurance Company to Pay Interest on Overdue JudgmentIn the recent decision of Close v. Dominion General Insurance, the Court of Appeal overturned the decision of the trial judge, Justice Mary Marshman.

Justice Marshman had ruled that the limitation period for Gordon Close to claim that Dominion had incorrectly calculated his Income Replacement Benefit (IRB).  She also ruled that Dominion was not required to pay post-judgment interest on the judgment it owed to Mr. Close.

The Court of Appeal reversed both findings.  On the issue of IRBs, the Court said that Mr. Close’s limitation period didn’t start to run until Dominion became aware of the error and refused to pay the amount that Mr. Close was paying.

It also held that the Statutory Accident Benefits Schedule required insurers to pay post-judgment interest as well as pre-judgment interest, and the trial judge had no discretion to hold otherwise.

Patrick Brown

Patrick Brown

Principal Partner

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