Can an insurer be bound by a judgement obtained against a tortfeasor?
Ontario, Canada
The following excerpt is from Reinbrecht v. Reinbrecht, 2007 CanLII 17202 (ON SC):
The Court of Appeal in Johnson v. Wunderlich applied an administration of justice rationale: If the respondent [Insurer] is removed from the action at this time it will not be bound by a judgement obtained against the alleged tortfeasors – because the action against them is uncontested. Accordingly, the whole matter of liability and damages might have to be re-litigated in a subsequent action against the respondent on the judgment. This multiplicity of proceedings would be completely unnecessary.
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