From: Stephen Pitel <spitel@uwo.ca>
To: obligations@uwo.ca
Date: 09/04/2013 15:48:26 UTC
Subject: ODG: Canadian Punitive Damage Award of $4.5 Million

Some of you may have seen this decision already, but it just reached me via the National Post: Branco v American Home Insurance Co, 2013 SKQB 98.  The court awards $4.5 million in punitive damages ($3 million against AIG and $1.5 million against Zurich), claiming this is in accord with the leading principles for such awards as set out in Whiten.  In Whiten, another case where insurers did not treat their insured well, the award was $1 million.

A further $450,000 in aggravated damages is awarded.

I have not fully thought through the case yet, but I am struck by how high an award this is, at least for Canada.

Stephen



--
Western Law

Dr. Stephen G.A. Pitel
Associate Professor
Goodmans LLP Faculty Fellow in Legal Ethics 2012-13
Faculty of Law, Western University
(519) 661-2111 ext 88433