The Duty of Utmost Good Faith

Article Summary

This paper on the duty of utmost good faith in the context of auto insurance and accident benefits is to be published in the Oatley McLeish Guide for Motor Vehicle Accidents. The paper outlines the legal history of this duty, beginning with Smith v. Cooperators and proceeding to more recent cases such as Tomec v. Economical. 

It also addresses the manner in which the duty cuts both ways, with the establishment of the independent actionable wrong principle from Whiten v. Pilot, and the possibility for insureds to pay punitive damages to insurers when they breach this duty, such as in RBC General Insurance v. Field. 

The paper discusses the consumer protection purpose of accident benefits legislation in Ontario, and provides a primer on the impact of self-representation by insured persons. 

It was authored by Kadey B.J. Schultz, and Colin MacDonald, and presented at the Osgoode Certificate in Motor Vehicle Accident Law and Practice: Tort and Accident Benefits Conference on April 12, 2022