The High Court has dismissed Canada Life Assurance Ireland Limited’s claim for €82,929.44 from former employee Liam O’Connor, finding he was medically unfit to do his regular job while receiving disability payments.
In a judgment delivered on 2 October 2006, Mr Justice Quirke rejected Canada Life’s claims for damages for breach of contract, payment under an account allegedly stated and settled, and deceit or misrepresentation. The court also addressed an unjust enrichment argument raised in the company’s written submissions, but noted that it had not been included in the pleadings.
O’Connor had worked for Canada Life selling financial products from 1989 until his dismissal in September 2002. His contract provided for disability income benefits if illness or injury left him unable to do his regular job and he was not pursuing another occupation for remuneration or profit.
The company sought repayment of benefits paid between December 2001 and September 2002. It argued that O’Connor was capable of working and had continued sales activity through insurance broker Raymond O’Neill while on paid sick leave. The judgment records that O’Connor had sustained serious injuries in an assault and a lawnmower accident, and was also treated for psychological illness. Medical certificates stating he was unfit for work were not challenged at trial.
The judge found that O’Connor remained ill and unfit for his regular work during the relevant period. He had intermittent contact and dealings with clients, likely occupying less than a quarter of his potential working week, but the court declined to infer from this that he was fit to perform his regular job. It found that he did not work for another company or receive commission or other payment from the client arrangement while ill.
The judgment said the arrangement to channel clients through O’Neill did not have Canada Life’s approval and was contrary to its policies and practices. But the court found no breach of contract affecting O’Connor’s entitlement to the disability benefit. It also found no evidence that the parties had settled an account, and Canada Life had not proved the elements needed to establish deceit or misrepresentation.
On unjust enrichment, the judge said the claim was not pleaded and added that the evidence suggested Canada Life had retained profits and commissions arising from the business, rather than O’Connor being enriched at its expense. The court dismissed Canada Life’s claim. The judgment does not address O’Connor’s separate, unrelated claim over the termination of his employment.