Liesch v. Standard Life Assurance Co., (2005) 211 B.C.A.C. 140 (CA)

JudgeHall, Saunders and Lowry, JJ.A.
CourtCourt of Appeal (British Columbia)
Case DateApril 06, 2005
JurisdictionBritish Columbia
Citations(2005), 211 B.C.A.C. 140 (CA);2005 BCCA 195

Liesch v. Standard Life (2005), 211 B.C.A.C. 140 (CA);

    349 W.A.C. 140

MLB headnote and full text

Temp. Cite: [2005] B.C.A.C. TBEd. AP.038

Donald Liesch (respondent/plaintiff) v. The Standard Life Assurance Company (appellant/defendant)

(CA031424; 2005 BCCA 195)

Indexed As: Liesch v. Standard Life Assurance Co.

British Columbia Court of Appeal

Hall, Saunders and Lowry, JJ.A.

April 6, 2005.

Summary:

Liesch was employed by Standard Life Assurance Company and was entitled to disability benefits under a group policy. Standard began investigating a potentially fraudulent commissions scheme engaged in by Liesch and other employees. Liesch had open heart surgery. Thereafter, he became depressed. Standard fired Liesch and sued him respecting the commissions scheme. Liesch's depression deepened. Standard denied him long-term disability benefits under the group policy. Liesch sued Standard for a declaration that he was entitled to long term disability benefits under the group policy.

The British Columbia Supreme Court, in a decision reported at [2003] B.C.T.C. 1749, allowed the action. Standard appealed.

The British Columbia Court of Appeal allowed the appealed and ordered a new trial.

Insurance - Topic 3590

Accident and sickness insurance - Exclusions - Illness arising from criminal activity - Liesch was employed by Standard Life Assurance Company - He received short-term disability benefits under a group policy due to depression - Standard fired Liesch and sued him respecting his involvement in a fraudulent commissions scheme - Liesch's depression deepened - Standard denied him long-term disability benefits - A trial judge held that Liesch was entitled to these benefits - Standard appealed, arguing that the trial judge failed to adequately address a clause in the policy that excluded coverage for any disability arising from, inter alia, illness resulting from committing a criminal offence - Standard argued that Liesch's depressive condition was caused by the financial pressures and stress arising from the fraudulent commissions scheme which led to his termination and a civil suit - The British Columbia Court of Appeal allowed the appeal and ordered a new trial - The trial judge failed to fully analyze the factual situation - It seemed highly likely that the disabling depressive condition could be an illness resulting from committing a criminal offence (fraud) - See paragraphs 10 to 30.

Cases Noticed:

Housen v. Nikolaisen et al., [2002] 2 S.C.R. 235; 286 N.R. 1; 219 Sask.R. 1; 272 W.A.C. 1; 2002 SCC 33, refd to. [para. 12].

Hanes v. Wawanesa Mutual Insurance Co., [1963] S.C.R. 154, refd to. [para. 15].

Standard Life Assurance Co. v. Horsburgh et al., [2004] B.C.T.C. Uned. 665 (S.C.), affd. (2005), 209 B.C.A.C. 8; 345 W.A.C. 8; 2005 BCCA 108 (C.A.), refd to. [paras. 13, 18].

Whiting v. Co-operative Life Insurance Co., [1976] 3 W.W.R. 474; 58 D.L.R.(3d) 435 (B.C.C.A.), refd to. [para. 19].

Barrett v. Mutual Life Assurance Co. of Canada, [1980] O.J. No. 233 (H.C.), refd to. [para. 19].

Rothwell v. Mutual Life Assurance Co. of Canada (1984), 53 N.B.R.(2d) 309; 138 A.P.R. 309; 4 C.C.L.I. 288 (T.D.), refd to. [para. 19].

Toronto (City) et al. v. Canadian Union of Public Employees, Local 79 et al., [2003] 3 S.C.R. 77; 311 N.R. 201; 179 O.A.C. 291; 2003 SCC 63, refd to. [para. 21].

St-Jean v. Mercier, [2002] 1 S.C.R. 491; 282 N.R. 310; 2002 SCC 15, refd to. [para. 31].

Sander v. Sun Life Assurance Co. of Canada, [2001] B.C.T.C. 1445; 99 B.C.L.R.(3d) 158; 2001 BCSC 1445, affd. (2003), 177 B.C.A.C. 208; 291 W.A.C. 208; 10 B.C.L.R.(4th) 203; 2003 BCCA 55, refd to. [para. 33].

Counsel:

D.G. Cowper, Q.C., and W. Westeringh, for the appellant;

N. Kambas, for the respondent.

This appeal was heard on January 17-19, 2005, at Vancouver, British Columbia, by Hall, Saunders and Lowry, JJ.A., of the British Columbia Court of Appeal. Hall, J.A., delivered the following reasons for judgment for the court on April 6, 2005.

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3 practice notes
  • Table of cases
    • Canada
    • Irwin Books Insurance Law. Second Edition Enforcing Insurance Contracts
    • June 23, 2015
    ...87, 8 CCLI (3d) 187, [1998] NBJ No 487 (CA) ................................................. 112 Liesch v Standard Life Assurance Co, 2005 BCCA 195 ..................................... 283 Lister v Romford Ice & Cold Storage Co, [1957] AC 555 (HL) ..........................540 Lloyd’s Lon......
  • Coverage
    • Canada
    • Irwin Books Insurance Law. Second Edition Enforcing Insurance Contracts
    • June 23, 2015
    ...v Insurance Corporation of British Columbia , 1999 BCCA 553 (trial judge erred in finding fraud); Liesch v Standard Life Assurance Co , 2005 BCCA 195 (trial judge erred in not finding fraud); Kerkowich v Wawanesa Mutual Insurance Co , 2005 MBCA 33 (trial judge’s finding of arson upheld); Ri......
  • Javadi v. Canada (Minister of Citizenship and Immigration), [2012] F.T.R. Uned. 138 (FC)
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    ...tenu compte des facteurs énumérés au paragraphe 48(4) des Règles ( Ramadani c Canada (Ministre de la Citoyenneté et de l'Immigration) , 2005 CF 211, [2005] ACF no 251; Modeste c Canada (Ministre de la Citoyenneté et de l'Immigration) , 2006 CF 1027, [2006] ACF no 1290; Golbom c Canada (Mini......
1 cases
  • Javadi v. Canada (Minister of Citizenship and Immigration), [2012] F.T.R. Uned. 138 (FC)
    • Canada
    • Federal Court (Canada)
    • February 29, 2012
    ...tenu compte des facteurs énumérés au paragraphe 48(4) des Règles ( Ramadani c Canada (Ministre de la Citoyenneté et de l'Immigration) , 2005 CF 211, [2005] ACF no 251; Modeste c Canada (Ministre de la Citoyenneté et de l'Immigration) , 2006 CF 1027, [2006] ACF no 1290; Golbom c Canada (Mini......
2 books & journal articles
  • Table of cases
    • Canada
    • Irwin Books Insurance Law. Second Edition Enforcing Insurance Contracts
    • June 23, 2015
    ...87, 8 CCLI (3d) 187, [1998] NBJ No 487 (CA) ................................................. 112 Liesch v Standard Life Assurance Co, 2005 BCCA 195 ..................................... 283 Lister v Romford Ice & Cold Storage Co, [1957] AC 555 (HL) ..........................540 Lloyd’s Lon......
  • Coverage
    • Canada
    • Irwin Books Insurance Law. Second Edition Enforcing Insurance Contracts
    • June 23, 2015
    ...v Insurance Corporation of British Columbia , 1999 BCCA 553 (trial judge erred in finding fraud); Liesch v Standard Life Assurance Co , 2005 BCCA 195 (trial judge erred in not finding fraud); Kerkowich v Wawanesa Mutual Insurance Co , 2005 MBCA 33 (trial judge’s finding of arson upheld); Ri......

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