Overview:

The Ontario Court of Appeal dismissed an appeal in a class action involving universal life insurance policies. The plaintiffs, Eldon Fehr, Gaetan Laurier, Leslie Michael Lucas, James Patrick O’Hara, Rebecca Jean Clark, and Lloyd Shaun Clark, sought to amend their claim to add the “Investment Spread Claim,” alleging improper increases to the investment spread (the difference between the insurer’s returns and credited interest) in 2001 and 2014. The court upheld the lower court’s decision that the claim was time-barred and procedurally improper.

Key Points:

• Certified Class Action: Originally focused on cost of insurance (COI) and administrative fees in policies sold in the 1980s-90s. Certification occurred in 2020.
• Proposed Amendment: Plaintiffs sought to add a new claim asserting breaches of good faith and contract due to undisclosed investment spread increases.
• Discoverability: The court found the claim was discoverable in 2016 based on documents disclosed then. Plaintiffs failed to investigate adequately.
• Limitations Period: The court ruled the claim was statute-barred under the Limitations Act, 2002. It also rejected applying a rolling limitation period, as the claim involved discrete breaches, not recurring obligations.
• New Claim: The proposed amendments introduced a new cause of action, distinct from the original claims.
• CPA Section 12: Adding the claim would fundamentally change the class action’s scope, undermining efficiency and fairness.

Conclusion:

The appeal was dismissed. The plaintiffs could not amend the claim due to late discovery, lack of diligence, and procedural issues. This decision reinforces strict limits on expanding claims in class proceedings.