Apology Accepted

In the movie A Fish Called Wanda John Cleese, albeit reluctantly, set the benchmark for public apologies:

Archie: All right, all right, I apologize.
Otto: You're really sorry!
Archie: I'm really really sorry, I apologize unreservedly.
Otto: You take it back!
Archie: I do, I offer a complete and utter retraction. The imputation was totally without basis in fact, and was in no way fair comment, and was motivated purely by malice, and I deeply regret any distress that my comments may have caused you, or your family, and I hereby undertake not to repeat any such slander at any time in the future.
Otto: OK.

With the introduction of Bill 16 - 2006 containing the proposed Apology Act, British Columbia became the first Province to consider legislation regulating the impact of such unreserved apologies. While the proposed Act is the first of its kind in Canada, there is similar legislation in some U.S. states and Australia.

An apology is defined in the Bill as an expression of sympathy or regret, a statement that one is sorry or any other words or actions indicating contrition or commiseration, whether or not the words or actions admit or imply an admission of fault in connection with the matter to which the words or actions relate.

The Bill provides that an apology made by or on behalf of a person in relation to any civil matter does not constitute an admission of fault or liability by the person. Nor does an apology extend a limitation period. The Bill further provides that the apology must not be taken into account in a determination of liability and must not be referred to or disclosed to the court in any proceeding.

In addition, and of significance to the insurance industry, the Bill provides that an apology does not, despite any wording to the contrary, in any policy of insurance, void, impair or otherwise affect the insurance coverage that would be available. This provision is clearly designed to address the standard policy term that an insured must not assume any obligations with respect to an accident or occurrence for which liability coverage is sought.

The Attorney General suggested the Apology Act “will encourage natural, open, direct dialogue between aggrieved parties and allow an apology to be made at an early stage of legal proceedings”. However, as insurers know such dialogue may not always be a good thing if in addition to an apology an insured provides information out of context that another party can use to establish liability.

The Bill will most likely be of benefit to government and the Attorney General where, for example, an apology may be demanded in an abuse case involving a public official. However, the Bill has wide application and will also be relevant when, for example, an insured under a home policy apologizes to a neighbour for an alleged trespass.

It remains to be seen whether the Bill, as introduced, will be passed by the Legislature. The complete wording can be found at:
http://www.legis.gov.bc.ca/38th2nd/
1st_read/m202-1.htm

Readers with questions as to the effect of the Apology Act on insurance coverage are welcome to contact Krista Prockiw (telephone: 604.643.3160 or email: kxp@cwilson.com a member of Clark Wilson's Insurance Group.