Kline Bros. & Co. v. Dominion Fire Ins. Co.

Kline Bros. & Co. v. Dominion Fire Ins. Co.

The binder signed by a clerk of the insurer's former agents was issued without authority to alter an existing policy; the insurer's subsequent indorsement could not ratify after the loss because the company could not insure a known loss; therefore the goods were not covered at the time of the fire and the appeal fails.

Citation
(1912) 47 SCR 252
Parties
Plaintiff Appellant: Kline Bros. & Co.; Defendant Respondent: The Dominion Fire Insurance Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
20 December 1912
Procedural Posture
Insurance/contract Dispute on Policy Coverage and Agency Authority / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal dismissed with costs; judgment of Court of Appeal for Ontario affirmed.
Legal Topics
Binder, Agent Authority, Ratification After Loss, Change of Location of Insured Goods, Materiality of Risk
Source Language
English
Insurance Law Contract Law Agency Law Equity (ratification/estoppel) Binder Agent Authority Ratification After Loss Change of Location of Insured Goods +1 more

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Parties

Kline Bros. & Co.

Plaintiff Appellant

The Dominion Fire Insurance Company

Defendant Respondent

Procedural Posture

Insurance/contract Dispute on Policy Coverage and Agency Authority / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether a broker's "binder" signed by a clerk of the insurer's former agents bound the insurer when used to consent to returning goods to original location
  2. 2 Whether the New York firm or its clerk had authority to consent to alteration of an existing policy
  3. 3 Whether a subsequent indorsement on the policy after the loss operated to ratify the prior unauthorized binder

Ratio Decidendi

The binder signed by a clerk of the insurer's former agents was issued without authority to alter an existing policy; the insurer's subsequent indorsement could not ratify after the loss because the company could not insure a known loss; therefore the goods were not covered at the time of the fire and the appeal fails.

Court Disposition

Appeal dismissed with costs; judgment of Court of Appeal for Ontario affirmed.

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of Appeal for Ontario affirmed