Quebec Superior Court has declared a disability insurance claimant a vexatious litigant after Industrial Alliance defeated his $3.5 million damages claim.
The May 8, 2026 ruling from Justice Janet Michelin in Tanguay v. Industrial Alliance, Insurance and Financial Services dismissed Daniel Tanguay's claim and barred him from filing further proceedings against the insurer without prior judicial authorization.
Tanguay had been receiving long-term disability benefits administered by Industrial Alliance since January 2013. By December 31, 2025, the insurer had paid him $388,217.85 in gross benefits, or $296,489.46 net. The dispute began when he sued both Industrial Alliance and his former employer, National Bank of Canada, on December 7, 2017, arguing he was entitled to benefits equal to 75 percent of his insurable earnings rather than 50 percent.
The court rejected the request to reopen the investigation and dismissed the main claim on September 22, 2022. A separate Court of Québec proceeding saw Industrial Alliance secure a judgment ordering Tanguay to repay $21,569.51 in overpayments arising from retroactive Régie des rentes du Québec payments. His attempt to file a $1.4 million counterclaim was refused on April 4, 2023.
On September 20, 2025, Tanguay filed a fresh claim seeking $3.5 million in damages under articles 1458, 2396 et seq., and 2500 et seq. of the Civil Code of Québec. He alleged the insurer breached the disability contract, miscalculated his benefits, was complicit in his January 11, 2017 dismissal from National Bank, and withheld a document referred to as Exhibit D-23, described in earlier proceedings as call coding involving him.
The court found these claims time-barred. Tanguay's insurable income of $75,625.50 had been used to calculate his benefits since 2013, and he had received T4A tax slips for more than 13 years confirming the benefits were taxable. He waited 12 years to challenge the calculation. Exhibit D-23, which he claimed was newly discovered, had been served on him four times between October 23, 2020 and September 2, 2022.
The only payment delays the insurer acknowledged occurred in 2019 - from March 1 to 7 to coordinate Quebec Pension Plan integration, then from June 1 to September 25 because Tanguay failed to submit a duly completed disability extension form. Once he supplied the information on September 17, 2019, Industrial Alliance paid all amounts due by September 25.
Justice Michelin emphasized that "caution and inaction are not synonymous," citing prior jurisprudence, and found the claim manifestly unfounded and abusive within the meaning of articles 51 and following of the Code of Civil Procedure.
The vexatious litigant declaration cuts deeper. Tanguay is now prohibited from filing any legal proceeding against Industrial Alliance in the Superior Court, the Court of Québec or any tribunal or administrative body under Superior Court supervision without prior written authorization from the Chief Justice of the Superior Court, the Chief Justice of the Court of Québec, the president of the tribunal, the director of the administrative body concerned, or any other person designated by them. Court registries must refuse any filing that lacks that authorization. The court also ruled Industrial Alliance may return to prove its damages at a later hearing.
For claims professionals, the decision sets out the factors the court weighed when assessing persistent litigation against an insurer: repeated relitigation of decided issues, monetary demands disproportionate to alleged harm, and reliance on documents the litigant has long possessed. It also confirms an abuse application under article 51 may be filed at any time during proceedings, giving insurers flexibility on timing.
