3 Jan 2024
Municipal Electric Association Reciprocal Insurance Exchange v. The Dominion of Canada General Insurance Company
Background:
- EARIE, a reciprocal insurance exchange, claims that Dominion and Travelers breached contracts, fiduciary duties, and conspired to cause harm to MEARIE.
Key Points/Takeaways:
- Dominion and Travelers filed a motion to strike out portions of MEARIE's claim related to inducing breach of contract, breach of fiduciary duty, knowing assistance in breach of fiduciary duty, and civil conspiracy.
- The court dismissed the motion to strike, finding MEARIE's claims plausible enough to proceed to trial.
- MEARIE claimed damages due to Dominion's proposed rate increases, which it considered arbitrary, unjustified, and unfair, in violation of their agreements.
- MEARIE asserts that Dominion and Travelers engaged in actions aimed at harming MEARIE rather than earning higher profits, indicating a conspiracy to cause harm.
Legal Principles Discussed:
- Rule 21.01(1)(b): Allows defendants to move to strike out a statement of claim if it discloses no reasonable cause of action, with a high standard of proof required.
- Fiduciary Duty: The court found MEARIE sufficiently pleaded facts suggesting Dominion might owe it a fiduciary duty based on their unique relationship.
- Civil Conspiracy: MEARIE successfully pleaded both predominant purpose conspiracy and unlawful act conspiracy against Dominion and Travelers.
No financial terms specified.