Ontario Hockey League teams sue insurers after COVID-19 claims dismissed – fr

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Ontario Hockey League teams sue insurers after COVID-19 claims dismissed – fr


The Kingston Frontenacs and the Sudbury Wolves of the Ontario Hockey League have sued insurance companies alleging that insurers broke contracts after refusing to cover teams’ financial losses due to the COVID-19 pandemic.

The Frontenacs filed a $ 1.1 million lawsuit against Lloyd’s Insurance Co. on January 22, 2021 in Ontario Superior Court in Kingston. The team asked a judge to rule that the insurer is guilty of negligence and of having committed unfair or deceptive acts or practices. The Frontenacs have asked a judge to demand that Lloyd’s pay $ 1 million for lost earnings and an additional $ 100,000 in punitive damages.

The Wolves, meanwhile, filed a $ 1 million lawsuit against Intact Insurance Co. on March 12 in Ontario Superior Court in Sudbury.

Frontenacs attorney Hovsep Afarian and Wolves attorney Gord McGuire declined to comment. Lloyd’s and Intact spokespersons did not respond to requests for comment.

The OHL was the only major junior hockey league in Canada not to have played a game this season. The OHL canceled its season on April 20 after the Ontario government, amid a growing third wave of the coronavirus pandemic, refused to approve the league’s plan to hold a shortened season in the city-centers.

Since the onset of the pandemic in early 2020, insurance companies around the world have defended claims by policyholders in many industries that they have wrongly refused to honor insurance claims. Many disputes have ended in the courts.

Major League Baseball and its clubs have filed a lawsuit in California against three insurers who have denied their claims for COVID-related losses.

The Frontenacs allege in their 24-page allegation that Lloyd’s drafted “sample rejection letters” which had the effect of “distorting the extent of coverage available … and discouraging the plaintiffs from pursuing their claim.”

The team wrote in their statement that COVID-19 equates to structural damage and should be treated as fire or flood.

“The coronavirus has come into contact and changed physical surfaces and objects on the premises,” the Frontenacs wrote. “The presence of the virus on these surfaces and objects is a physical alteration which makes them, as well as the premises, dangerous and unfit for use. use. The coronavirus also makes the air in insured premises dangerous because droplets or airborne aerosols are physically present in the air and present a risk of transmission by inhalation or by contact with the eyes, nose or mouth. There is a physical change in the air in such situations, just as there would be a gas leak or a toxic substance release.

The Frontenacs did not detail their financial losses related to the shutdown due to COVID-19. According to the team’s financial statements filed in court in a still unresolved minimum wage class action lawsuit (a settlement in this case has yet to be approved by a judge), the Frontenacs reported a benefit of $ 707,488 on revenues of $ 1.3 million in fiscal year 2016.

According to the Wolves trial, the City of Sudbury ordered the closure of certain public facilities, including the team arena, on March 16, 2020.

Wolves wrote in their claim that they submitted a business interruption insurance claim six months later on September 9.

On October 5, Intact informed the team that it was rejecting the claim, Wolves said.

“Intact has thus acted in breach of contract and is liable to the Club for damages for the same,” Wolves wrote. “These damages are estimated at $ 1,000,000, details of which will be provided before trial.”
The latest financial documents available from Sudbury indicate that the team made a profit of $ 90,638 in 2014 on revenues of $ 3.6 million.

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