Executive Summary: Key Legal and Evidentiary Issues

• Justice Morgan approved the Notice of Proposed Settlement and the Pre-Approval Notice Plan on consent.
   
• The certified class covers Legion branches and similar veterans' and service organizations across Canada, excluding British Columbia, that submitted COVID-19-related business interruption claims to Aviva.
   
• Parties executed a Settlement Agreement on July 2, 2026, conditional on court approval under section 29(2) of the Class Proceedings Act, 1992.
   
• An objection filing deadline of August 28, 2026 was set for class members opposing the settlement.
   
• Procedural history left the court file bearing a Commercial List number rather than a Class Proceedings number, which the court treated as a non-impeding formality.
   
• No monetary settlement amount is disclosed in this endorsement.
   

Facts of the case

The Royal Canadian Legion, Victory Branch #317, brought this motion in a certified class action against Aviva Insurance Company of Canada. Justice Belobaba certified the action on July 27, 2021, on behalf of a class comprising Legion branches and similar veterans', service, and legacy organizations operating across Canada (except British Columbia) that were insured by Aviva under a Commercial Insurance Policy issued pursuant to the PIB Provincial Command Insurance Program, and that submitted claims for business income loss under that policy's Restricted Access and/or Negative Publicity coverage. The underlying claims arose from business interruptions caused by government-mandated closure orders issued across Canadian provinces and territories in March and April 2020, by subsequent orders of civil authority restricting access to class members' premises, or by COVID-19 outbreaks within 25 kilometres of those premises. On August 25, 2021, Justice Belobaba approved the certification notice program, and class counsel disseminated notice directly to class members as required by that order. On July 2, 2026, the parties executed a Settlement Agreement, conditional on court approval. The present motion, brought on consent, sought approval of a Notice of Proposed Settlement and a Pre-Approval Notice Plan.

Policy and legislative provisions at issue

The underlying coverage dispute concerns a Commercial Insurance Policy issued by Aviva under the Legion Program, specifically the Business Income Actual Loss Form (912000-01), which included Restricted Access and Negative Publicity coverage. The settlement approval process itself is governed by section 29(2) of the Class Proceedings Act, 1992, which conditions the Settlement Agreement on court approval.

Reasoning and analysis

Justice Morgan found the proposed Notice appropriately informative and concluded that the pre-approval plan for disseminating it followed the successful methods used in the original certification notice program. The Notice set an objection filing deadline of August 28, 2026, giving class members an opportunity to object before the settlement approval hearing. The court separately addressed an administrative issue: due to a period the action spent on the Commercial List, the court file carries a "CL" number rather than a "CP" number. Justice Morgan characterized this as a formality that should not impede the timely filing of these or subsequent motion materials, and directed that the action be treated going forward as if it carried a CP file number. Plaintiffs' counsel were directed to email the judge's assistant a revised draft Order, in Word format, containing an operative paragraph reflecting this endorsement.

Ruling and overall outcome

Justice Morgan approved the Notice of Proposed Settlement and the Pre-Approval Notice Plan, granting the motion as brought on consent. The Plaintiffs were the successful party on this motion. This endorsement addresses only the approval of the notice process leading to a future settlement approval hearing; it does not state or resolve any monetary award, and no settlement amount or quantum is specified in this document.