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Implied Undertaking Rule Inapplicable in Context of Independent Medical Examination

February 16, 2017

Unifund Assurance Company v Churchill, 2016 NLCA 73

In this case, the Newfoundland & Labrador Court of Appeal considered the scope of the implied undertaking rule in circumstance involving an independent medical examination. Churchill, who was injured in a motor vehicle accident, commenced a tort claim against the other driver. He also claimed, and initially received, wage-indemnity benefits from his automobile insurer, Unifund. When these benefits were later terminated, Churchill sued Unifund for breach of contract. By that time, the tort action had settled.

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