A Manitoba government employee who was diagnosed with long COVID and another ailment is suing the province and Canada Life after her request for long-term disability payments was denied by the insurance company.
The woman was working as the manager of the Legislative Assembly gift shop and has been an employee of the Manitoba government since 2014, the lawsuit says.
She was entitled to long-term disability benefits from the employer under a group disability plan administered by Canada Life for the province, the court document says.
It says Canada Life made the decision to deny her claim, but the Manitoba government could have overruled that decision and ought to have done so. The plaintiff was diagnosed with long COVID and chronic fatigue syndrome, the lawsuit says, “which has wholly prevented her from performing her regular duties.”
In November 2024 she submitted a claim to Canada Life for long-term disability, stating that she has been unable to work.
In an April 24 letter denying the claim, Canada Life said it had to assess whether her continuing medical symptoms are of a severity that would prevent her from performing her duties as a gift shop manager.
It concluded that the medical information on file supports that the plaintiff “would be able to function within a sedentary level,” and that she would not be prevented from performing her occupational duties.
The court document says the plaintiff’s job as manager of the gift shop was not sedentary.
As manager of the gift shop, the lawsuit says, the plaintiff, 52, had a list of duties including purchasing, meeting with suppliers, budgeting, general administration, daily sales and deposits, keying in or scanning the prices of merchandise, wrapping or bagging products, and loss prevention.
The employee should have long-term disability benefits in the amount of 70 per cent of her bi-weekly earnings, says the statement of claim filed Sept. 23 in the Manitoba Court of King’s Bench.
Canada Life’s medical director reviewed the file and advised that “while she did not see a clear medical contraindication to work, the plaintiff’s limitations would be due to her fatigue, which is difficult to quantify, but could interfere with a variety of work conditions,” the court document says.
The review concluded “the plaintiff’s symptoms appear to be triggered by … activities” as simple as lifting her arms.
Canada Life arranged an independent medical examination by a physiatrist, a doctor specializing in physical medicine and rehabilitation.
The physiatrist referred to the plaintiff’s symptoms such as fatigue and brain fog, saying, “the plaintiff has features in her presentation of post covid, post viral prolonged recovery of symptoms, at times this is called Long Covid.”
While the physiatrist found “it is possible that the plaintiff could currently perform sedentary level work in some capacity,” the specialist recommended a brain MRI and an assessment by a neurologist, the court document says, adding those two recommendations were ignored by the defendants.
The lawsuit alleges the disability benefits were denied even though the defendants knew the plaintiff’s work as the gift shop manager was not a sedentary job, and that they knew “her job required her to do basic activities like lifting her arms”.
In denying the long-term disability benefits, “the plaintiff has been put under extreme financial pressure,” the claim says.
“The defendants’ actions in failing to honour the terms of the plan have aggravated the plaintiff’s condition and symptoms, and caused her to suffer extreme stress and anxiety,” the court document says.
The lawsuit seeks a court order requiring the defendants to pay the long term disability benefits from December 14, 2024 onward, for as long as the plaintiff continues to be disabled.
It also seeks aggravated and punitive damages, and costs related to the legal proceedings.
The plaintiff alleges Canada Life and the Manitoba government “have arbitrarily and without justification denied her right to the payment of LTD benefits and have done so in a high handed, egregious and cavalier manner without any regard to their actions and knowing, but not caring, of the consequences of their actions.”
The allegations have not been tested in court and the defendants have not filed defence statements.
The plaintiff’s lawyer, Joseph Pollock, declined to comment on the case.
A Manitoba government spokesperson indicated the province is aware of the claim, but has no comment because the matter is before the courts.
CBC News reached out to Canada Life Assurance Company but has not received comment on the lawsuit.
