139 Moreover the trial judge who sat through the evidence went out of his way

139 moreover the trial judge who sat through the

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learned appellate judge as not only wrong but "irrational". 139 Moreover, the trial judge, who sat through the evidence, went out of his way to comment that the [page663] award, while high, was reasonable. It was rational. He then added to Pilot's burden an award of over $320,000 in solicitor-client costs. 140 Having accepted with some hesitation the adequacy of the trial judge's instructions to the jury, and there being no convincing demonstration that the jury's subsequent imposition and assessment of punitive damages were irrational, I would affirm the award of punitive damages. IV. Conclusion 141 I would allow the appeal and restore the jury award of $1 million in punitive damages, with costs in this Court on a party-and-party basis. 142 The respondent's cross-appeal against the award of any punitive damages is dismissed with costs to the appellant, also on a party-and-party basis. The following are the reasons delivered by LeBEL J. (dissenting on the appeal) 143 This case raises important issues about the proper functions of tort law, the role of punitive damages within it and the control of jury awards. In the end, I respectfully disagree with Binnie J.'s reasons and proposed disposition of the appeal. Although I agree that the bad faith of the Pilot Insurance Company ("Pilot" or "Pilot Insurance") in its handling of the claim, up to and during the trial, amply justifies awarding punitive damages, an award of $1 million goes well beyond a rational and appropriate use of this kind of remedy, especially in what began as a problem of contract law. The majority of the Court of Appeal for Ontario set the amount of punitive damages at a sum which was consistent with the nature and purpose of punitive damages in the law of torts and had sufficient reasons to interfere with the jury's verdict. I find myself in [page664] substantial agreement in this respect with Finlayson J.A.'s reasons in the Court of Appeal. 144 In these reasons, I will not attempt a full review of the facts that gave rise to this litigation. My colleague has made a careful review of them and I will refer to them only inasmuch as may be required by some particular aspect of this appeal. 1. Punitive Damages and the Functions of Tort Law 145 In this case, the plaintiff took action in order to claim compensation for a loss of about $345,000 under a residential and home insurance policy. The plaintiff did not ask for aggravated damages, but sought punitive damages. At the end of the trial, she was awarded the full amount of her actual loss, her costs on a solicitor-client basis and punitive damages amounting to about three times her losses. 146 Tort law fulfills diverse functions. While deterrence and denunciation both still play a role,
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Page 38 of 44 Whiten v. Pilot Insurance Co., [2002] 1 S.C.R. 595 since it broke away from criminal law in the Middle Ages, in its core function, tort law has been compensatory or corrective. (See A. M. Linden, Canadian Tort Law (6th ed. 1997), at pp. 4-7.) 147 The purpose of this part of our legal system remains to make good the loss suffered, no less, no more:
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