More than six years after Ontario's pandemic closure order, Aviva and Legion branches have reached a settlement now headed for court approval.
The Ontario Superior Court of Justice has approved a Notice of Proposed Settlement and a Pre-Approval Notice Plan in the class action brought by Royal Canadian Legion, Victory Branch #317, against Aviva Insurance Company of Canada. The motion was heard in writing on August 10, 2026, and was brought on consent - Aviva did not oppose it.
The class was certified in 2021 and covers Legion branches and similarly operating veterans, service, and legacy organizations across Canada, except British Columbia, that were insured by Aviva under a Commercial Insurance Policy issued on behalf of the Royal Canadian Legion through the PIB Provincial Command Insurance Program, and that submitted a claim for lost business income. Central to the dispute is the policy's Restricted Access and Negative Publicity coverage, contained in a Business Income Actual Loss Form. Covered claims stem from the mandatory closure order Ontario issued on March 23, 2020, similar closure orders made across other provinces and territories that March and April, later orders of civil authority restricting access to a branch's premises, or a COVID-19 outbreak within 25 kilometres of a branch.
After certification, Aviva supplied class counsel with the names, addresses, emails, and phone numbers of class members so a certification notice could be sent directly - an approach the court noted had worked well and is now being reused for the settlement notice.
On July 2, 2026, the parties executed a Settlement Agreement. That deal is not yet final: it still requires court approval under section 29(2) of the Class Proceedings Act, 1992, at a future hearing. Before that hearing takes place, class members must receive notice of the proposed settlement and an opportunity to object. The approved plan sets an objection filing deadline of August 28, 2026.
The court found the proposed notice "appropriately informative" and held that the dissemination plan mirrors the certification notice methods already used successfully in the case.
The ruling also addressed a procedural quirk: because of the case's history on the Commercial List, its file number carries a CL designation rather than the CP designation typical of class proceedings. The court directed that the action continue to be treated as though it carried a CP number, so filings are not delayed on that technicality, and asked plaintiffs' counsel to provide a revised draft order reflecting this.
The settlement itself does not take effect until the court signs off at that later hearing, and this ruling does not address the amount or terms. In the meantime, class members will receive direct notice of the proposed deal, with the window to object running until August 28, 2026.
