Williams v. Canada
T-1782-88
MacKay J.
29/3/95
20 pp.
Claim for alleged breach of trust by defendant in regard to insurance provided -- Matter submitted on consent of parties for determination of certain issues set out in judgment of Court of Appeal -- Plaintiff former employee of defendant in public service of Canada -- Received disability benefits from March 15 to August 15, 1982 pursuant to insurance policy available to him -- Canada Employment, Immigration Commission recommending plaintiff be released from public service on grounds of incapacity based upon continuing absence from work -- Application to Federal Court of Appeal for judicial review dismissed in September 1983 -- Present action commenced in September 1988 -- Agreement between parties and insurer to remove matter from litigation and seek resolution by alternate mechanism established among them -- Agreement containing detailed provisions for selection of independent examiner to consider all medical evidence and for examiner's determinations of health issues, if unanimous, to be binding on all parties -- Panel rendering unanimous joint report -- Plaintiff claiming agreement frustrated -- Court of Appeal remitting matter to Trial Division for trial of certain issues -- First issue characterization of agreement -- Agreement not describing itself as "valuation" or "arbitration" agreement -- By terms of agreement parties intending to abandon litigation except in one circumstance, where examiner's report failed to reach unanimity on question of disability -- Agreement providing for "valuation", that is determination by panel, relying upon expertise of members in assessing information provided to or acquired by them, and within terms of agreement itself, of answers to questions specified in agreement -- Second, third issues concerning application of principle of frustration of contract -- Under doctrine of frustration of contracts, agreement terminated, obligations of parties under it discharged -- Examiner's conclusions not so flawed agreement between parties frustrated -- Circumstances not supporting finding principle of frustration of contracts applies herein -- Parties not discharged from obligations assumed under agreement -- Under paragraphs 5 and 6 of judgment of Court of Appeal, if Court finds agreement between parties not frustrated, action shall be dismissed -- In accord with Court of Appeal's directions, action dismissed.