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Dismissal of Class Actions Against Insurers Upheld by Court of Appeal

In a previous blog post, we discussed a decision involving class actions against several insurers for improperly deducting HST from statutory accident benefits. The motion judge dismissed the claims against the insurers because the Licence Appeal Tribunal has exclusive jurisdiction over statutory accident benefits disputes.

The plaintiffs also sued the Financial Services Commission of Ontario for failing to investigate the practices of the insurers and for failing to enforce its own guidelines. Justice Belobaba allowed the claims against the Financial Services Commission of Ontario to proceed.

Last week, in Dorman v. Economical Mutual Insurance Company, 2021 ONCA 314, the Ontario Court of Appeal upheld Justice Belobaba’s decision.