Crime And Punishment - Punitive Damages Allowed Despite Criminal Sanctions

The recent Alberta Provincial Court decision of Industrial Alliance Insurance and Financial Services Inc. v Sheret will be of interest to those considering a claim for punitive damages despite prior successful criminal sanctions against a defendant.

This decision dealt with a lawsuit brought by Industrial Alliance Insurance ("IA") against a defendant formerly employed by a Calgary area dentist. During the defendant's employment, the defendant remitted multiple fraudulent insurance claims on her behalf, and on behalf of her common-law partner. In total, $10,989.69 was stolen in the course of 27 fraudulent transactions.

The defendant was charged and plead guilty under the Criminal Code, serving 14 days in prison along with 25 hours of community service. Furthermore, the defendant also paid back to IA all the money that was stolen.