Capping the Automobile Leasing Company's Liability

Our firm handles a lot of Vehicle Leasing litigation and documentation. Working in this area of law, we’ve seen a lot of changes over the years, particularly to the liability of leasing companies when one of their lessees is in an accident.

In 2006 the Ontario law changed to limit the liability of a Leasing company & it’s Insurer to one million dollars, less any amount the lessee’s insurance policy has available for the claim. While you might like to think that would end things, as lawyers, we wait for the Court challenges to proceed before we exhale a bit.

At the end of 2014 the Ontario Court of Appeal upheld the limit of the 2006 change and as a result Leasing Companies, and their insurers, do not need to wonder if they have enough insurance protection, provided they maintain the requisite one million dollar coverage.

There is not a lot of certainty these days (just read some of our Blogs about Employment Law issues) however, it is nice to see that in this one are of law, there is a bit of certainty for now.

Inga B. Andriessen JD

Skip to content
Share via
Copy link