The Royal Canadian Legion v. Aviva
Lerners LLP filed a class action against Aviva Insurance Company of Canada on behalf of Branches of The Royal Canadian Legion across Canada, and other veterans, service, and legacy organizations operating in a similar manner to Legion Branches (except in the province of British Columbia) whose insurance coverage for loss of business income relating to COVID-19 has been denied by Aviva.
This action applies to all Legions and other veterans, service, and legacy organizations operating in a similar manner to Legion Branches who were insured under the commercial insurance policy issued by Aviva on behalf of The Royal Canadian Legions, pursuant to the PIB Provincial Command Insurance Program. The action alleges that Aviva is in breach of contract when it denied the Legions’ loss of business income coverage after they were ordered by provincial and territorial governments to close their non-essential businesses due to the outbreak of COVID-19. The action claims for payment of loss of business income damages to those Legions with the Aviva policy.
NOTICE OF PROPOSED SETTLEMENT (AUGUST 2026)
The Royal Canadian Legion Class Action Regarding
PIB Provincial Command Insurance Program
Read this notice carefully as it may affect your legal rights
THIS NOTICE IS TO:
All Class Members who are: all persons, natural or corporate, carrying on operations as branches of The Royal Canadian Legion and other veterans, service, and legacy organizations operating in a similar manner to Legion Branches across Canada (except British Columbia) which were insured by and have submitted a claim to Aviva Insurance Company of Canada (“Aviva”) under a Commercial Insurance Policy issued by Aviva on behalf of The Royal Canadian Legion, pursuant to the PIB Provincial Command Insurance Program (“Legion Program Policy”), which included “Restricted Access” coverage and/or “Negative Publicity” coverage under Business Income Actual Loss Sustained Form (912000-01), and which claimed loss of business income:
(a) caused by the interruption of its business when ingress to or egress from its premises was restricted in whole or in part order made by the Province of Ontario on March 23, 2020, and similar closure orders made in all Provinces and Territories in Canada in March or April 2020 (the “Closure Orders”), and/or
(b) caused by the interruption of its business when ingress to or egress from its premises was restricted in whole or in part by any subsequent order of civil authority, and/or
(c) as a direct result of an outbreak of COVID-19 within 25 kilometers of its premises (the “Class”).
A class action settlement (“Settlement”) has been reached between Aviva and The Royal Canadian Legion, Victory Branch #317 as Representative Plaintiff for the Class for C$5,512,275.50 to resolve the claims asserted on behalf of all Class Members against Aviva.
IMPORTANT DEADLINES
Objection Deadline (to object to the proposed Settlement, Class Counsel’s Fee Approval Request, the proposed Representative Plaintiff Honorarium, or the proposed Distribution Protocol): September 11, 2026.
THE NATURE OF THE CLAIMS ASSERTED
The Action alleges that Aviva is in breach of contract when it denied the Class Members’ loss of business income coverage. The Action claims for payment of loss of business income damages to the Class Members insured under the Legion Program Policy.
THE CERTIFICATION ORDER
By Order dated July 15, 2021, the Ontario Superior Court (“Court”) certified the Action as a class proceeding under the Ontario Class Proceedings Act, 1992. The Court appointed the plaintiff, The Royal Canadian Legion Victory Branch #317, in London, Ontario as the representative plaintiff (“Representative Plaintiff”) and Lerners LLP as Class Counsel.
THE SETTLEMENT
On July 2, 2026, the Representative Plaintiff and Aviva executed a Settlement Agreement (“Settlement Agreement”), which is subject to approval by the Court. The Settlement Agreement provides for the payment of $5,512,275.50 (“Settlement Amount”) in consideration of the full and final settlement of the claims of Class Members.
The Settlement Agreement provides that, if approved by the Court, the claims of Class Members asserted or that could have been asserted in the Action will be fully and finally released, and the Action will be dismissed.
The Settlement Agreement is not an admission of liability, wrongdoing, or fault on the part of Aviva, which has denied, and continues to deny, the allegations against it.
SETTLEMENT APPROVAL HEARING
The Settlement Agreement is conditional on approval by the Court. The Settlement Agreement will be approved if the Court determines that it is fair and reasonable and in the best interests of the Class Members to approve it.
The Court will hear a motion for approval of the Settlement on October 14, 2026 at the Superior Court of Justice – Toronto: 330 University Ave., Toronto, Ontario M5G 1R7.
CLASS COUNSEL’S FEES AND OTHER EXPENSES
The Representative Plaintiff and the Class are represented by Lerners LLP (“Class Counsel”). Class Counsel are conducting the Action on a contingent fee basis. On October 14, 2026, Class Counsel will make a motion to the Court for approval of their fees, which in the aggregate will not exceed $1,225,000.00 inclusive of HST, plus reimbursement for expenses incurred in the litigation in the maximum amount of $300,000.00, inclusive of HST.
On October 14, 2026, Class Counsel will also seek the Court’s approval for the payment of an honorarium to the Representative Plaintiff in the maximum amount of C$15,000.00. Class Counsel will be requesting that the honorarium be deducted directly from the Settlement Amount.
On October 14, 2026, Class Counsel will also seek a Court Order appointing MDD Forensic Accountants as Accountant and Claims Administrator as defined in and for the purposes of carrying out the Distribution Protocol.
The fees of the Accountant and Claims Administrator, together with any other costs relating to approval, notification, implementation and administration of the Settlement (“Administration Expenses”), will also be paid from the Settlement Amount.
CLASS MEMBERS’ ENTITLEMENT TO COMPENSATION
If the Settlement is approved by the Court, the Settlement Amount, less the Court-approved Class Counsel Fees and Disbursements, Honorarium, Accountant’s Fees, and Administration Expenses (“Settlement Funds”) will be distributed to Class Members who file valid and timely claims in accordance with the Distribution Protocol.
On October 14, 2026, the Plaintiff will seek the Court’s approval of the Distribution Protocol and a process by which Class Members can claim compensation from the Settlement Funds.
The proposed Distribution Protocol will provide that in order to determine the individual entitlement of Class Members who make claims, the losses of each claimant will be calculated in accordance with the Distribution Protocol. Once the losses of all Class Members who have filed valid claims have been calculated, the Net Settlement Amount will be allocated to those Class Members in proportion to their percentage of the total losses calculated for all valid claims filed. Because the Settlement Funds will be distributed pro rata, it is not possible to estimate the individual recovery of any individual Class Member until all the valid claims have been received and reviewed.
The approval of the Settlement Agreement is not contingent on the approval of the Distribution Protocol. The Court may still approve the Settlement Agreement even if it does not approve the Distribution Protocol or approves amendments to the Distribution Protocol.
PARTICIPATION IN THE APPROVAL MOTION
The following material will be posted on Class Counsel’s website dedicated to the Action https://lerners.ca/deals-and-cases/canadian-legion-class-action on or before the dates set out below:
Class Members who wish to comment on, or make an objection to, the approval of the Settlement Agreement, the proposed Honorarium, the Distribution Protocol or the fees and disbursements of Class Counsel shall deliver (by email, mail or courier) a written submission to Class Counsel, to be postmarked or received no later than September 11, 2026, at the following email address or mailing address:
Kevin L. Ross
Email: kross@lerners.ca or royalcanadianlegionclassaction@lerners.ca
Tel: 519.640.6315 or toll free at 1.844.847.1262
Fax: 519.932.3315
Please check the website for this Action from time to time for any information updates:
https://lerners.ca/deals-and-cases/canadian-legion-class-action
ADDITIONAL INFORMATION
This notice has been approved by the Ontario Superior Court of Justice. The Court offices cannot answer any questions about the matters in this notice. The Orders of the Court and other information in both languages are available on Class Counsel’s website at https://lerners.ca/deals-and-cases/canadian-legion-class-action
Questions relating to the Action may be directed to Class Counsel using the contact details above.
Si vous avez besoin d’aide en français, veuillez contacter les avocats du groupe en utilisant les coordonnées ci-dessus et nous dirigerons votre demande vers une personne appropriée.
The publication of this notice was authorized by The Honourable Justice E.M. Morgan of the Ontario Superior Court of Justice
TENTATIVE SETTLEMENT UPDATE AND NEXT STEPS (APRIL 2026)
Background
Lerners LLP commenced a class action in June 2020 on behalf of Branches of The Royal Canadian Legion across Canada (except in the province of British Columbia) whose insurance coverage for loss of business income related to COVID-19 was denied by Aviva Insurance Company of Canada ("Aviva"). The action was certified as a class proceeding by the Honourable Justice E. Belobaba on July 15, 2021.
Tentative Settlement Reached
Prior to the common issues trial that was scheduled to proceed on February 9, 2026, the parties reached a tentative settlement, thereby avoiding the need for trial. The settlement is described as "tentative" because, by law, any settlement of a class action must receive formal approval from the Court before it becomes binding on the parties and the class. This requirement exists to protect the interests of class members and to ensure that the proposed settlement is fair, reasonable, and in the best interests of the class as a whole.
The Settlement Approval Process
The settlement approval process under Ontario's Class Proceedings Act, 1992 involves several stages, each of which is supervised by the Court.
Approval of the Notice Plan
Before the Court can consider whether to approve the settlement, the Court must first approve a Notice Plan. The Notice Plan is the method by which all class members will be informed about the proposed settlement and the upcoming Settlement Approval Hearing. This step ensures that every class member receives proper and adequate notice about the proposed settlement, the terms of the settlement, and the opportunity to participate in the approval process.
Notice to Class Members
Once the Court approves the Notice Plan, formal notice will be provided to all class members in accordance with the Court's direction. That notice will contain important information about the terms of the proposed settlement, the date and details of the Settlement Approval Hearing, and the process by which class members may make submissions to the Court regarding the proposed settlement, if they wish to do so. The notice will be a court-approved document and will be distributed in accordance with the approved Notice Plan.
The Settlement Approval Hearing
A Settlement Approval Hearing has been scheduled for October 14, 2026. At this hearing, the Court will consider whether the proposed settlement is fair, reasonable, and in the best interests of the class. The Court's role at this stage is to act as an independent guardian of the interests of all class members. The Court will review the terms of the proposed settlement, consider any submissions made by class members, and make a determination as to whether the settlement should be approved. The hearing is a critically important safeguard in the class action process, and it is designed to ensure that the settlement serves the collective interests of the class.
If the Court approves the settlement, the settlement will become final and binding, and the process for the distribution of settlement funds to class members will follow.
What Should Class Members Do
At this time, class members do not need to take any action. Class members will receive formal notice of the proposed settlement and the Settlement Approval Hearing in due course, following the Court's approval of the Notice Plan. In the meantime, we encourage class members to continue to monitor the Royal Canadian Legion Class Action website for updates: The Royal Canadian Legion Class Action: Victory Branch # 317 v. Aviva I Lerners LLP.
Contact Us
Any questions can be directed to:
Kevin L. Ross
Partner, Lerners LLP
Email: kross@lerners.ca or royalcanadianlegionclassaction@lerners.ca
Tel: 519.640.6315 or Toll-free: 1.844.847.1262 / Fax: 519.932.3315
LITIGATION UPDATE (APRIL 2025)
The action remains in the common issues phase. That involves the determination of the issues affecting all members of the class. To assist the parties in discussing resolution of the action, the services of a retired judge have been engaged. Dates have been set aside in June, July, and August 2025 for those discussions. Correspondence will be sent to class members to provide additional details.
If the action cannot be resolved, a trial of the common issues is scheduled to proceed over six weeks in Toronto, commencing on January 19, 2026. Numerous steps have been taken to ensure it is ready for trial, if necessary. The action was transferred to the Ontario Superior Court of Justice, Commercial List. The Commercial List is a specialized court with experience managing complex commercial litigation. It has additional resources to ensure the litigation proceeds efficiently.
The parties have also agreed on and are working through a timetable for the completion of all steps in the lawsuit. Documents have been exchanged and in March 2025, examinations for discovery of the parties’ designated representatives were completed.
Examinations for discovery allow each party’s lawyer to question the opposing party under oath to gather evidence and clarify issues before trial. This process helps prevent surprises at trial and encourages settlement by revealing important information beforehand. The parties are now making efforts to answer additional requests for information arising from the examinations.
In advance of the trial, the parties will exchange expert reports and attend a pre-trial management conference conducted by the Court. Further updates will be provided.
Important Notice (April 2024)
Lerners has been advised that some class members may have received a Notice of Certification related to a separate class action commenced by Nordik Windows Inc. against Aviva Insurance Company of Canada (“Aviva”). The Notice was delivered to you in error by those parties. Please disregard it, as you are not class members in the Nordik action.
Attention Class Members
This action is certified. A copy of the Notice of Certification is accessible here. The opt-out period has closed. If you did not opt-out before November 14, 2021 at 5:00pm EST, and fall within the class definition, you are a class member. If you are a class member, please ensure that we have your current contact information and that you keep our offices informed of any changes in your contact information.
The class definition is:
All persons, natural or corporate, carrying on operations as branches of The Royal Canadian Legion and other veterans, service, and legacy organizations operating in a similar manner to Legion Branches across Canada (except British Columbia) which were insured by and have submitted a claim to Aviva under a Commercial Insurance Policy issued by Aviva on behalf of The Royal Canadian Legion, pursuant to the PIB Provincial Command Insurance Program (“Legion Program”), which included “Restricted Access” coverage and/or “Negative Publicity” coverage under Business Income Actual Loss Sustained Form (912000-01), and which claimed loss of business income:
a) caused by the interruption of its business when ingress to or egress from its premises was restricted in whole or in part (“Restricted Access”) by the mandatory closure order made by the Province of Ontario on March 23, 2020, and similar closure orders made in all Provinces and Territories in Canada in March or April 2020 (the “Closure Orders”), and/or
b) caused by the interruption of its business when ingress to or egress from its premises was restricted in whole or in part by any subsequent order of civil authority, and/or
c) as a direct result of an outbreak of COVID-19 within 25 kilometres of its premises.
The Legion Action is preparing to proceed to the common issues phase of the litigation. The Plaintiff’s present intention is the make a Rule 20 motion for summary judgment as soon as reasonably possible and as directed by the Court. This summary judgment motion will determine common issues related to the coverage questions and interpretation of the Policy.
Please check back on this page for further updates.
If you have any questions on the current state of the proceeding please do not hesitate to contact us at the contact information below.
Legions and their management with an insurance policy issued by Aviva that were denied loss of business income coverage, please contact Kevin Ross at kross@lerners.ca or RoyalCanadianLegionClassAction@lerners.ca or 519.640.6315, or toll-free at 1.844.847.1262.
Procedural History
This action has been proceeding with another similar action on behalf of Ontario denturists.
Carriage
On January 6 and 15, 2021, the court heard a motion to determine which law firm will have carriage over this matter. On January 21, 2021, the court ruled in favour of Lerners LLP. A copy of the Order of Justice Belobaba can be viewed here. A copy of the Reasons of Justice Belobaba dated January 26, 2021 can be viewed here.
Certification
Justice Belobaba has been appointed as the case management judge for this proposed class proceeding.
A separate proposed class action against Aviva has also been proceeding together with the Denturist/Legion Actions (the “Nordik Action”). The Nordik Action seeks to advance the claims of the Aviva insureds who are not part of the Denturist/Legion Actions.
The motion for certification of the proposed class action proceeded on May 18, 2021, and July 5-6, 2021. The action was certified as a class action in July 2021. A copy of the Order of Justice Belobaba certifying the class action can be viewed here. A copy of the Reasons of Justice Belobaba dated July 15, 2021 can be viewed here.
In a separate order, the court settled the means by which Notice of Certification shall be given (the “Notice Program”). A copy of the Order of Justice Belobaba settling the Notice Program can be viewed here.
The defendant sought leave to appeal the certification decision to the Divisional Court, which was specifically focused only on the supplemental Negative Publicity Coverage issues in the Legion Action. The defendant was also seeking leave to appeal the Nordik Action certification decisions in its entirety.
In an order date December 21, 2021, Belobaba J. set aside the Nordik Action certification decisions and directed a rehearing of the Nordik Action certification motion. That Order is a matter solely affecting the Nordik Action. A copy of the Order of Justice Belobaba dated December 21, 2021 setting aside the Nordik Action certification decisions and directing a rehearing of the Nordik Action certification motion can be viewed here.
The Plaintiffs’ in the Nordik Action sought leave to appeal Belobaba J.’s December 21, 2021 Order to the Divisional Court.
The Divisional Court determined it would hear both motions for leave to appeal sequentially, with the Nordik Action motion going first, followed then by the initial and earlier motion by Aviva for leave to appeal. Both motions for leave to appeal were heard in writing by the Divisional Court the week of March 7, 2022. On March 11, 2022, the Divisional Court dismissed Nordik’s motion for leave to appeal to set aside the order of Belobaba J. dated December 17, 2021. In dismissing Nordik’s motion, the Divisional Court also dismissed Aviva’s motion for leave to appeal, finding Aviva’s appeal was now moot. A copy of the Endorsement of the Divisional Court dated March 11, 2022 can be viewed here.
This website provides only general information about this class action. While it is not always current, it is updated from time to time as information becomes available.
This website is not designed to and does not provide legal advice or answer legal questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice for your individual situation. This website does not replace independent legal advice.
Providing information through this website does not make you a client of Lerners LLP or our co-counsel, does not create a solicitor-client, fiduciary or other form of relationship, and does not make you a member of the class. Whether or not you are a class member is determined by court order. Any information you provide will not be privileged, confidential or private. The information you provide may assist in prosecuting this matter as a class action and assessing damages for the class overall.