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June 2019

Ontario Superior Court of Justice Recognizes Recoverability of Adverse Costs Insurance

Ontario Superior Court of Justice Recognizes Recoverability of Adverse Costs Insurance

We are excited to share an exciting and important step forward for access to justice in Canada!

In a decision of the Ontario Superior Court of Justice, released earlier this week, Justice Tausendfreund ruled that adverse costs insurance is "a compensable disbursement to be included as a costs obligation payable to the Plaintiffs", on the basis that it constitutes “access to justice” issue.

Justice Tausendfreund followed the 2017 decision of the Ontario Superior Court of Justice in Armstrong v. Lakeridge Resort Ltd.

In Armstrong, Justice Salmers aptly summarized the barrier to justice that adverse costs insurance serves to eradicate: “Without costs insurance, the fear of a very large adverse costs award would cause many Plaintiffs of modest means to be afraid to pursue meritorious claims. It is in the interests of justice that Plaintiffs be able to pursue meritorious claims without fear of a potentially devastating adverse costs award."

We are proud to provide Canadians and their legal counsel with greater access to justice, and look forward to more progress from our judiciary on this important issue.

Source: https://www.canlii.org/en/on/onsc/doc/2019/2019onsc3931/2019onsc3931.html





 

Posted: 6/27/2019 2:50:19 PM by May Chow


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