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A recent Ontario Court of Appeal (OCA) decision helps clarify when insurance companies are liable in parental negligence cases, Toronto insurance defence lawyer Heather Vaughan tells Law Times.
Vaughan, a partner with Benson Percival Brown LLP, says the decision is an important one.
“This is a very significant case because it closes off another avenue for liability coverage for claims against parents for negligent supervision,” she tells the online legal publication.
“Homeowner’s policies usually contain exclusions for bodily injury to an insured or another person residing in the insured’s household. Claims for negligent parenting may not be covered under any parent’s policy of insurance, leaving them exposed personally for any liability found.”
In this case, the daughter, a minor, sued her father for negligent parenting for allowing her to ride with a drunk driver, reports Law Times.
The driver was the father’s girlfriend, and he was also in the car. The father sought a declaration that his girlfriend’s auto insurance company had a duty to defend him in the lawsuit. But the OCA disagreed.
According to the decision, the daughter’s injuries are insurable under the Insurance Act, but a lawsuit for negligent parenting stemming from them are not.
“The court found that the parent’s liability arises out of negligent parenting and not out of the operation of a motor vehicle, even though the damages arise out of the use of an automobile,” says Vaughan, who was not involved with the case and comments generally.
