MacKean v Royal & Sun Alliance Insurance Company of Canada, 2015 NSCA 33
Royal Insurance settled a Section D claim with its insureds. It obtained default judgment against the tortfeasor, and applied to assess the damages. The wrongdoer did not appear to defend the motion. Royal argued that damages should be based on the reasonableness of the settlement with its insureds. The judge disagreed, holding that the settlement amount was irrelevant. Royal had to prove the insureds’ losses on a balance of probabilities, calculated as of the date of the hearing, not the settlement date.
