Court Finds Insurer Waived Breach of Statutory Condition

In a case recently upheld by the Ontario Court of Appeal, the driver in a car accident had an elevated blood alcohol level and the passenger was seriously injured. The passenger brought an action for damages. The insurer unsuccessfully sought to limit the passenger's recovery under insured's policy on grounds insured breached statutory condition of her policy (blood alcohol level) which voided third party liability coverage. The Court held that the insurer's interpretation of policy was correct but that insurer's conduct from January 2002 to August 2005 amounted to waiver by conduct of insured's breach. For over three years, the insurer did not raise the potential coverage issue. In the context of the insurer electing to defend the action and taking many steps with respect to its defence over a three year period, it was obvious that passenger would be prejudiced if insurer was allowed to raise coverage issue three years into the action. For a free consultation regarding your motor vehicle accident claim, call Todd K. Plant at 613-563-1131. Plant Quinn Thiele LLP, Ottawa Personal Injury Lawyers, www.pqtlaw.com