The Court of Queen’s Bench of Alberta has issued a decision dismissing a lawsuit brought forth by Transamerica Life Canada against Holly Price-Goulet, who worked at Oakwood Associates Advisory Group Ltd., a Calgary-based insurance brokerage.
According to the decision, Transamerica launched a lawsuit against Oakwood, Price-Goulet, and various others in 2007, alleging that they participated in a scheme that involved “placing large policies of life insurance, which earned large first-year commissions. It is alleged that policies were subsequently cancelled, or reduced, resulting in commission chargebacks. The chargeback system maintained by Transamerica operated incorrectly, and Oakwood and numerous brokers received larger commissions than they should have received as the chargebacks were not properly recovered.”
The court notes that the insurer doesn’t claim Price-Goulet participated in the alleged scheme, only that she should have reported it: “She did not receive any excess commissions herself. The primary complaint against her is that Transamerica claims that she failed to report the wrongdoing of others to Transamerica.”
Price-Goulet sought summary dismissal of the lawsuit, arguing that the claim against her has no merit. The court agreed, saying, “Transamerica tenders little or no evidence that the underlying alleged improper commission rebate scheme even happened. In addition, it tenders little, or no evidence as to exactly what Ms. Price-Goulet knew, or did not know, about the alleged scheme. Most importantly, it tenders little or no evidence in support of a factual matrix that would impose upon Ms. Price-Goulet some obligation to act as a ‘whistleblower’ in Transamerica’s favour.
“Even if she knew about the alleged wrongdoings, and even if there were such wrongdoings, she is in a position where she expressly operates under a Transamerica contract that says that she is an independent contractor. She is being asked to implicate those that she works with, and her then husband, in what is alleged to be a large and elaborate scheme,” the decision notes. “Transamerica asks the court to draw many inferences based only upon allegations. In this case, and based upon the law… and the obligation of the responding party to put its best foot forward, the evidence simply does not support continuation of this action as against Ms. Price-Goulet.”
As a result, the court granted Price-Goulet application for summary dismissal of the action against her.