Case information

Labour relations — Collective agreements — Long term disability benefits — Jurisdiction — Arbitration — Lower courts finding claim against long term disability insurer subject to grievance and arbitration under union’s collective agreement with employer — Whether arbitration is adequate forum for adjudication of unionized employees’ claims under third party insurance policies ancillary to their collective agreements, when insurance carrier is contractually obliged to administer and pay those claims — What are legitimate contractual interests of union members, as third party beneficiaries of group insurance policies that are protected by the organizing principle of good faith contractual performance, in terms of insurer’s liability for its performance — How should these protected contractual interests be weighed in analysis of whether benefit entitlement dispute arises, in its essential character, from interpretation, application, administration or alleged violation of collective agreement?

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

The issue in this case is whether the courts have jurisdiction over the applicant’s claim against her long term disability insurer or whether the claim is subject to grievance and arbitration under her union’s collective agreement with her employer.

The motion judge found that the court had no jurisdiction and granted the insurer’s summary judgment motion to dismiss the action. The Court of Appeal dismissed the appeal.