Why This Matters for Ontario Workers with Private Disability Insurance. ‍

A recent ruling from the Saskatchewan Court of Appeal is making waves across Canada—and it carries important implications for anyone dealing with a denied long-term disability (LTD) claim, even here in Ontario.

In this case, the court upheld an employee’s right to sue in civil court after being denied long-term disability benefits, rather than being forced into a judicial review or internal appeal process. Although the case originated in Saskatchewan, the underlying legal principles are highly relevant to Ontario workers—especially those covered by private or employer-sponsored disability insurance plans.

The Case: Denied LTD Benefits and the Right to Civil Litigation

The dispute involved a SaskTel employee and union member, who was denied LTD benefits under the Disability Income Plan (DIP), a plan administered by Canada Life and overseen by a government agency, PEBA.

After exhausting internal appeals, the employee filed a civil lawsuit for wrongful denial of benefits. The employer argued that the employee should have pursued judicial review or arbitration under their union agreement.

However, the Court of Appeal ruled that civil litigation was appropriate because the council denying the benefits was not a formal administrative tribunal, and the plan functioned more like a private insurance policy.

Why This Matters in Ontario

At Randy Ai Law Office we are a Toronto-based law firm that serves clients across Ontario, focusing exclusively on private disability insurance claims—including those involving short-term and long-term disability benefit denials.

Even though this case arose in Saskatchewan, it reflects broader legal principles that apply in Ontario and across Canada:

• Many employer disability plans are administered by private insurers, like Canada Life or Manulife, even when they’re connected to public employers or unions.
• Denials under these plans are often contractual issues, not administrative decisions—meaning you may have the right to sue your insurer in civil court.
• Judicial review isn’t always required: You’re not necessarily limited to challenging a denial through government channels or union processes, especially if the body that made the decision isn't a true administrative tribunal.

Denied Disability Benefits in Ontario? Know Your Rights.

If your long-term disability benefits have been denied or cut off, you don’t have to accept the insurer’s decision. You may be entitled to compensation through a civil lawsuit, even if you’ve already gone through internal appeals.

At Randy Ai Law Office, we help Ontario clients challenge wrongful denials and benefit terminations by private insurers. We fight for your rights under the terms of your insurance policy—whether it’s through negotiation or litigation.

Contact our Toronto disability lawyers today for a free consultation. Let us help you get the benefits you're entitled to.