Three insurers face lawsuit on “blackout” claims

Three Canadian insurers are now facing class action lawsuits stemming from claims made for perished stock and business interruption losses following the August 2003 blackout.Aviva Canada Inc., Lombard General Insurance Co. of Canada and Royal & SunAlliance Insurance Co. of Canada face suits filed by Windsor and Toronto area businesses which, if certified, could include all policyholders of the companies at the time of the blackout who had coverage for business interruption and/or “consequential stock loss”. Windsor-based Farron’s Gourmet Butcher Shops Inc. and Leo DeLuca Enterprises Inc., as well as Prego Della Piazza of Toronto all allege their claims following the blackout were denied by insurers.The plaintiffs are seeking $50 million in compensatory damages and $5 million in punitive damages, alleging the insurers acted in bad faith. The lawsuit is being led by Windsor law firm Sutts, Strosberg LLP.