Background:

• Claim: Preston sought long-term disability (LTD) benefits after an injury but was denied by Sun Life on March 24, 2020.
• Legal Action: Preston filed a lawsuit for LTD benefits in August 2022, after consulting legal counsel in February 2022.
• Defense: Sun Life argued that Preston’s claim was barred by a one-year limitation period under the Insurance Act.

Key Issues:

1. Limitation Period Start: Court determined the limitation began on March 24, 2020, when Sun Life issued a clear denial letter, initiating the timeline.
2. Applicability of Section 12 of Limitation of Actions Act (LAA): Preston argued that her claim was related to personal injuries and sought to use Section 12 to disallow the limitation defense.
3. Court's Ruling on Section 12: The court found that LTD claims are contractual, not “in respect of personal injuries,” and thus Section 12 did not apply.

Decision:

• Outcome: The court upheld the one-year limitation under the Insurance Act, barring Preston’s claim.
• Costs: Left to be determined between parties.
• No monetary award specified.