What is the test for punitive damages in an action for breach of contract?

Manitoba, Canada


The following excerpt is from McCallum v. Government of Manitoba, 2006 MBQB 114 (CanLII):

The law is well settled that to support an award of punitive damages in an action for breach of contract, there must be an “independent actionable wrong” and an insurer’s breach of the duty of good faith is an actionable wrong independent of a breach of the contractual duty to pay and can form the basis of a claim for punitive damages. See Fidler v. Sun Life (supra), para. 60.

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