Whiten v. Pilot Insurance Co. The unofficial death of the independent wrong requirement and official birth of punitive damages in contract

Three year have passed since the Supreme Court of Canada rendered its controversial decision in Whiten v. Pilot Insurance Co. The Whiten decision appears to be the first attempt by the Supreme Court to construct a comprehensive set of rules and principles in light of which punitive damages cases should be decided in the future. While the extraordinary monetary sanction upheld by the court has attracted much attention in legal and commercial circles, it seems that other aspects of the decision, especially the question of its impact on the availability and scope of punitive damages, have not so far receive the full academic attention they deserve. This article attempts to bridge the gap by analyzing those aspects of the Whiten decision that are relevant to this question. While Whiten significantly expands the potential scope of the punitive damages doctrine, it is difficult to predict the extent to which this potential will actually be realized in subsequent judicial decisions.