The Ontario Superior Court of Justice recently dismissed a negligence action brought against an insurer following a serious motor vehicle accident. The Court found that the plaintiff’s pleadings did not disclose a reasonable cause of action.
In Khan v. Primmum Insurance Company et al., 2026 ONSC 1201, the plaintiff was a passenger in a vehicle driven by her daughter on July 24, 2020, when a collision occurred. She alleged that she suffered significant and lasting physical and psychological injuries. Her husband, who was also a passenger, died from his injuries.
The plaintiff issued her statement of claim in February 2023, naming TD Canada Trust and Primmum Insurance Company (the insurer for her daughter’s vehicle) and an unidentified driver as defendants. The TD defendants maintained that they had no independent duty of care to the plaintiff and no relationship to the unidentified driver. They also asked the plaintiff several times to add her daughter, the insured driver, as a defendant, which she declined to do.
When the plaintiff later sought to amend her claim, she attempted to add her daughter as another plaintiff rather than a defendant. The TD defendants did not consent and brought a motion to strike the pleading under Rule 21.01(1)(b) of the Rules of Civil Procedure, arguing that it failed to disclose a reasonable cause of action. They also moved, in the alternative, for summary judgment under Rule 20.04, asserting that there was no genuine issue requiring a trial and that the action was statute-barred.
Court strikes claim and rejects amendment
The Court granted the TD defendants’ motion. Both the original and proposed amended claims were struck under Rule 21.01(1)(b) for failing to disclose a reasonable cause of action. The Court held, in the alternative, that summary judgment was appropriate because there was no genuine issue for trial. The Court also found the claim was issued approximately six months beyond the two-year limitation period.
The plaintiff requested an adjournment, which the Court denied. The judge found that an adjournment would be meritless, would further delay the proceeding, and would prejudice the TD defendants. The Court emphasized that naming an insurer in the title of a proceeding is not sufficient to create a cause of action. The statement of claim provided no factual or legal basis for imposing liability on the insurer. Any potential liability could only arise from a finding that the driver, the plaintiff’s daughter, was negligent. Because the daughter’s identity was known, this was not an unidentified motorist case.
Court reaffirms limits on insurer liability
The Court also noted that the claim did not include a proper claim for coverage relating to the unidentified motorist. Despite multiple requests from counsel for the TD defendants, the plaintiff did not amend the claim to add her daughter as a defendant. The Court considered this a clear situation where leave to amend should be denied and found that permitting further amendments would cause non-compensable prejudice to the defendants.
Applying the principles from Hryniak v. Mauldin, 2014 SCC 7, the Court held that there was no genuine issue requiring a trial. It concluded that the plaintiff’s pleadings lacked any factual or legal foundation for imposing liability on the insurer, and the claim was commenced outside the limitation period.
Key takeaway for insurers and defence counsel
This decision highlights the importance of properly framed pleadings when pursuing claims involving insurers. An insurer is not automatically liable for the actions of an insured person, and plaintiffs must identify a specific legal and factual basis to advance such a claim. The decision also demonstrates the Court’s willingness to strike or summarily dismiss cases that fail to meet this threshold.
Flaherty McCarthy LLP represents insurers and their insureds in complex motor vehicle and negligence matters across Ontario. Our lawyers are experienced in defending claims at every stage of litigation, from early motion work to trial, and are committed to achieving timely and practical results for our clients.
