Whiten v. Pilot Insurance Co., 2002 SCC 18. The Supreme Court of Canada restored a $1 million punitive damages award against an insurer that persisted with an unfounded allegation of arson when denying a claim after a house fire. The Court emphasized the insured vulnerability and the insurer obligation of good faith. The award addressed denunciation, punishment and deterrence for exceptional misconduct and must be distinguished from compensatory mental distress damages for an ordinary breach of contract.
Case card
Whiten v. Pilot Insurance Co., 2002 SCC 18
The Supreme Court restored a $1 million punitive damages award against an insurer that pursued an unfounded arson defence after a devastating house fire. The judgment addresses exceptional bad-faith claims handling and punitive damages, not an ordinary commercial entitlement to mental distress compensation.
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