INTRODUCTION
The Ontario Court of Appeal upheld an auto-insurer’s denial of coverage to a mother-daughter duo who turned a motor vehicle accident into a case of civil fraud. The Court in Wong v Aviva insurance Company of Canada, 2024 ONCA 874[i] upheld the lower court’s analysis of Hryniak v Mauldin, 2014 SCC 7[ii], to determine that lying to your insurer about the driver of the vehicle involved in an accident can constitute civil fraud.
FACTUAL BACKGROUND
On March 18, 2019, a motor vehicle collision occurred between Victoria Wong (Applicant / Appellant in This Action) and Natalie Robertson (the Plaintiff in the Main Action).[iii] At the time of the accident, Wong believed that her license had expired and was afraid that she would face criminal sanctions. She called her mother and owner of the 2013 Toyota involved in the accident, Tieu, to attend the scene and to state that she had been the driver of the vehicle in the accident.[iv] Tieu attended the scene, and together her and Wong went to the collision reporting centre to complete the necessary forms, specifically naming Tieu as the driver. These documents were all signed by Tieu. Later on, Wong called Aviva, pretending to be Tieu, and made the accident claim.[v]
Three months post-accident, Robertson commenced the Main Action against Tieu, and Aviva defended on Tieu’s behalf.[vi] Tieu and Wong continued to misrepresent the truth of the accident to the police, Aviva, and her own counsel.[vii] Aviva first learned of Tieu and Wong’s misrepresentations at Robertson’s examination for discovery, where Robertson disclosed that a young woman had been driving the other vehicle.[viii]
Aviva denied coverage to both Tieu and Wong under the Policy and declined to defend or indemnify them against Robertson’s claim.[ix] Aviva took an off-coverage position. They were appointed as a Statutory Third Party to the Main Action and filed a defence.[x]
In the lower court decision, Antoniani J. held that Wong violated the Aviva terms and conditions of the insurance policy and made material misrepresentations to Aviva and others.[xi] Further, Antoniani J. held that the elements of civil fraud were met.[xii] The Application was dismissed.