Settlement of action - Releases - Damages - Disclosure of amount - Privilege; Policies and insurance contracts - Rights and duties of insurer

Sarah Swan
November 2007

Philips v. Stratton et al.

[2007] B.C.J. No. 1940

British Columbia Supreme Court

Bennett J.

September 6, 2007

The Plaintiff was seriously injured in a motor vehicle accident.  The Plaintiff entered into a “BC Ferries” settlement with one Defendant.  The Plaintiff subsequently amended his statement of claim in accordance with B.C. Ferries Corporation v. T&N plc, [1995] B.C.J. No. 2116.  The Insurance Corporation of British Columbia (“ICBC”) argued that it should have access to the settlement amount to assist with negotiations and to prevent double recovery.  The Plaintiff argued the amount should only be disclosed after judgment and the apportionment of liability.

The Court found that settlements are generally confidential, but there are exceptions to this general rule.  The Court found that ICBC had failed to meet the requirements of relevance and necessity to bring itself within this rule, and dismissed the application on the understanding that there was no objection to the disclosure of the amount after judgment and the apportionment of liability.

This case was digested by Sarah Swan of Harper Grey LLP.  If you would like to discuss this case further, please feel free to contact her directly.