A single call could save you more than $ 60,000

A single call could save you more than $ 60,000


Case Study:


  • An ex-employee of one of our clients filed a complaint for being dismissed without just and suffisant cause. 

  • The case goes to the Administrative Labour Tribunal

  • 2 years later, the court overturns the dismissal. 

  • An agreement is then negotiated between the parties. It is made without admission of liability for the sole purpose of reaching an agreement and to settle the dispute with the payment of a compensatory amount of several thousand dollars.

  • The compensatory amount and the lawyer’s fees increase the client's bill to more than $ 60,000. 

  • 3 years after filing the complaint, our client notifies us of this situation. Three claims were opened. One from the previous insurer, one from the current insurer and one from our new legal insurance product, available since the spring of 2016.


Insurers' verdict: not admissible.


Why ?


First, a contract means both parties have obligations. In this case, the insured failed to fulfill his obligations by omitting, for various valid reasons, to notify his insurer. In any insurance contract, whether for a day care service, a car, a restaurant or a residence, the insured must declare to the insurer any claim that may affect the warranty, as soon as the insured becomes aware of it.


Secondly, the insurer may have managed the case differently, by initiating mediation with the former employee before going to court. The insurance company could have been able to limit the allowances and the lawyer's fees. The insurer is therefore prejudiced.


Once again, any insurance contract stipulates that when the insurer has not been informed of the claim and has suffered damage, it is entitled to rely on any policy clause provides for the forfeiture of the right to compensation.


Unfortunately in 2017, 3 such cases were reported to our offices.


Click here to read an article by Lavery Lawyers describing another case that reflects the importance of communicating with its insurer.

When in doubt, call!

The disclosure rights of this case are held by Assurances Andrée Bernier & Filles inc.