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Member, Beacon International Group, Ltd.
WINDSOR, OntarioProposed class action lawsuits seeking $165 million in damages have been filed against three Canadian insurers for allegedly failing to pay claims related to the August 2003 blackout.
The lawsuits were filed last week in the Ontario Superior Court of Justice in Windsor, Ontario on behalf of businesses in Ontario who had bought coverage from: Aviva Canada Inc.; Lombard General Insurance Co. of Canada; and Royal & Sun Alliance Insurance Co. of Canada. All of the insurers are based in Toronto.
The lawsuits allege that the insurers breached their insurance contracts and acted in bad faith by refusing to pay claims related to the Aug. 14, 2003 blackout that knocked out power to an estimated 50 million people in Ontario, Quebec and the northeastern United States. The claims were for perished stock and business interruption losses caused by the power outage.
The lawsuits seek $55 million in damages from each of the insurers.
"This case is in litigation and is without merit," a spokeswoman for Royal & Sun Alliance said. "We will actively defend ourselves."
The other insurers could not immediately be reached for comment.