Allstate Canada’s counter lawsuit against a former employee has been dismissed by an Ontario Superior Court Judge.
The insurer had lodged a counter lawsuit claiming defamation against former agency manager Medha Joshi. Joshi had claimed in her own lawsuit that she was fired from her job at Allstate for allegedly exposing discriminatory sales practices by the province’s major insurance providers.
She filed her lawsuit against Allstate Canada last December, claiming wrongful dismissal and seeking $600,000 in damages. In response, Allstate Canada later filed a countersuit of its own in May this year, which could cost Joshi more than $700,000 in damages, plus applicable legal fees.
But Justice Jessica Kimmel dismissed Allstate’s countersuit on July 22, 2019, CBC News reported.
Kimmel explained in her decision that when companies are purported to have violated human rights, and when employee whistleblowers call attention to discriminatory practices, “public interest trumps the interests of private corporations.”
Allstate Canada has responded to the decision, expressing disappointment and maintaining that Joshi’s allegations are “baseless.”
“We are disappointed in the outcome, but note that this is not a decision on the merits of Ms. Joshi's baseless allegations,” said Allstate Canada vice-president of legal and general counsel Angie Morris in an email statement to CBC News.
Morris added that the company’s legal counsel is reviewing the decision and will considering appealing in the weeks to come.
