Mutual of Omaha v. Stats

Mutual of Omaha v. Stats

Majority held the insured’s death was an "accident" within the policy: ordinary meaning covers unlooked‑for mishaps including those resulting from negligence, even gross negligence, and coverage is excluded only where the insured realized the danger and deliberately assumed the risk; evidence did not establish that the insured deliberately sought the collision, so insurer’s refusal to pay was incorrect.

Citation
[1978] 2 SCR 1153
Parties
Appellant (defendant): Mutual of Omaha Insurance Company; Respondent (plaintiff): Evelyn Isobel Stats
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
29 June 1978
Procedural Posture
Insurance Appeal / Supreme Court of Canada on Appeal From the Court of Appeal for Ontario
Outcome
Appeal dismissed; judgment of Court of Appeal for Ontario restored; Martland J. dissenting.
Legal Topics
Definition of Accident, Accident Policy Coverage, Intoxication and Causation, Foreseeability, Policy Interpretation
Source Language
English
Insurance Civil Liability Criminal Law Definition of Accident Accident Policy Coverage Intoxication and Causation Foreseeability Policy Interpretation

Case Brief

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Parties

Mutual of Omaha Insurance Company

Appellant (defendant)

Evelyn Isobel Stats

Respondent (plaintiff)

Procedural Posture

Insurance Appeal / Supreme Court of Canada on Appeal From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether death of insured while driving intoxicated constituted an "accident" under a travel accident policy
  2. 2 Whether voluntary intoxication and decision to drive precludes characterization of resulting death as accidental
  3. 3 Relationship between negligence/gross negligence and "accident" for insurance coverage purposes

Ratio Decidendi

Majority held the insured’s death was an "accident" within the policy: ordinary meaning covers unlooked‑for mishaps including those resulting from negligence, even gross negligence, and coverage is excluded only where the insured realized the danger and deliberately assumed the risk; evidence did not establish that the insured deliberately sought the collision, so insurer’s refusal to pay was incorrect.

Court Disposition

Appeal dismissed; judgment of Court of Appeal for Ontario restored; Martland J. dissenting.

Orders

  • Appeal dismissed
  • Respondent awarded $25,000 plus interest under the policy