Municipal Electric Association Reciprocal Insurance Exchange v. The Dominion of Canada General Insurance Company
Municipal Electric Association Reciprocal Insurance Exchange
Law Firm / Organization
Goodmans LLP
The Dominion of Canada General Insurance Company
Law Firm / Organization
Stikeman Elliott LLP
The Travelers Companies, Inc.
Law Firm / Organization
Stikeman Elliott LLP

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.

Superior Court of Justice - Ontario
CV-22-00678235-0000
Civil litigation
Plaintiff