What is the test for punitive damages in a breach of contract?
Ontario, Canada
The following excerpt is from Piresferreira v. Ayotte, 2008 CanLII 67418 (ON SC):
Vorvis v. Insurance Corp. of British Columbia, 1989 CanLII 93 (SCC), [1989] 1 S.C.R. 1085 at paras. 25-27 stands for the proposition that punitive damages are recoverable in regard to a breach of contract where the defendant’s conduct is “an actionable wrong” which caused the injury complained of by the plaintiff and the conduct itself was “harsh, vindictive, reprehensible and malicious” i.e. “extreme in its nature and such that by any reasonable standard it is deserving of full condemnation and punishment.”
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