By William E. McNally and Barb Cotton

The Alberta Court of Appeal has recently reversed a “chilling” cost award of Rooke J. in the auto insurance deductible class action and in doing so has opened the door for class actions in Alberta. In Pauli v. Ace Ina Insurance Co., the Alberta Court of Appeal per curiam, with Fruman and Wittmann J.A. and Rawlins J. (ad hoc) on the panel, allowed a no costs order to issue, for the most part, with respect to the class action litigation.

As summarized by the appellate court, the class action represented individuals whose motor vehicles were damaged beyond economic repair. They made insurance claims and were paid the actual cash value of the vehicle less the policy deductible. In each case the insurer took title to the salvage. The appellants commenced a representative action against Alberta insurers, challenging the practice of subtracting the policy deductible from the cash value..

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