The Ontario Superior Court recently allowed an employee to
proceed with claims against his former employer regarding long-term
disability insurance, even though he had signed a release in
exchange for a severance package when his employment
ended.
The Facts
The employee in Swampillai v. Royal & Sun
Alliance Insurance Company of Canada brought an action for
payment of long term disability benefits (“LTD”) and
related relief against his former employer, and against the
insurance company which provided administrative services in respect
of the benefits.
The employee worked for the employer for several years before he
became disabled from working and began received LTD. After two
years, the insurance company adjudicating the claim advised the
employee that he no longer qualified for benefits. The employee
retained a law firm to appeal the LTD denial, and while the appeal
was ongoing, his employer advised that his employment was being
terminated. The employer
