Federal Court Restricts Definition Of "Commercial Activity" Under PIPEDA

On July 9, 2010, the Federal Court of Canada restricted the scope of the definition of "commercial activity" under the Personal Information Protection and Electronic Documents Act (PIPEDA), when it was asked to determine whether the provisions of PIPEDA apply to evidence collected by an insurer, on behalf of an insured, in a tort action.

Specifically, State Farm Mutual Automobile Insurance Company (State Farm) had used video surveillance to inquire about the activities of a third party (Plaintiff) who had brought an action against an insured of the insurer in connection with a motor vehicle accident (State Farm has a duty to defend such an insured pursuant to New Brunswick insurance laws). The Plaintiff subsequently made a request to State Farm that, pursuant to PIPEDA, all information collected in the course of its investigation be disclosed to him. State