Can a claim be made for mental distress arising out of a contractual breach of a disability insurance contract?

British Columbia, Canada


The following excerpt is from G. Wilson Construction Co. Ltd. v. Westeinde, 2012 BCSC 1356 (CanLII):

There is none of the kind of evidence one might expect to support such a claim, and I am unable to see that a basis exists for such a claim in this context, assuming it could be made on an application of this nature. GWC relies on Fidler v. Sun Life Assurance Company of Canada, 3, 2006 SCC 30, [2006] 2 S.C.R. 3, where, at para. 53, the court considered mental distress damages arising out of a contractual breach of a disability insurance contract. In that case, however, the court concluded that the prospect of mental distress from a breach of that particular type of contact was within the reasonable contemplation of the parties. The contract in the case at bar is a commercial contract, and while one anticipated result of a settlement is a resolution of a dispute which may well bring a feeling of relief to the parties, the primary purpose of entering into a commercial settlement is not to protect the parties from emotional stress and insecurity.

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