Gostick v. Squance

Gostick v. Squance

Paragraph 4 of the standardized FPC Endorsement reduces the FPC limit only by the liability insurance limits of the inadequately insured motorist and by the limits of any person jointly liable for the particular claimant’s injuries; because no person was jointly liable with Squance for the respondents’ injuries, Royal’s maximum liability under the FPC Endorsement to those respondents is the full $1,000,000. Insureds’ uninformed expectations do not alter interpretation.

Citation
2007 ONCA 674
Parties
Respondent/plaintiff (minor): Evan Tylor Gostick; Respondent/plaintiff (minor): Travis Keon Gostick; Respondent/plaintiff (litigation Guardian and Personal): Allan Paul Ingleson; Respondent/plaintiff: Evan Gostick, Sr.; Respondent/plaintiff: Bruce Morrison; Respondent/plaintiff: Beverley Morrison; Respondent/plaintiff (also Defendant/appellant in Related Procedural Posture): Colleen Morrison; Appellant/defendant: Royal & SunAlliance Insurance Company of Canada; Appellant/defendant (deceased): Trevor Squance (deceased) by his Litigation Administrator Douglas Strelshik; Appellant/defendant (estate Litigation Administrator): Leonard Hochberg (Litigation Administrator for the Estate of Trevor Squance)
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
4 October 2007
Procedural Posture
Civil / Appeal From Superior Court Decision on Motions to Determine Entitlement Under Family Protection Coverage Endorsement (insurance Coverage Appeal)
Outcome
Appeal dismissed.
Legal Topics
Family Protection Coverage Endorsement (opcf 44 R), Uninsured/underinsured Motorist Coverage, Policy Limit Aggregation/deduction, Interpretation of Insurance Endorsements, Eligible Claimant, Costs
Source Language
English
Insurance Law Tort Negligence Automobile Insurance Civil Procedure Contract Interpretation Family Protection Coverage Endorsement (opcf 44 R) Uninsured/underinsured Motorist Coverage Policy Limit Aggregation/deduction +3 more

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Parties

Evan Tylor Gostick

Respondent/plaintiff (minor)

Travis Keon Gostick

Respondent/plaintiff (minor)

Allan Paul Ingleson

Respondent/plaintiff (litigation Guardian and Personal)

Evan Gostick, Sr.

Respondent/plaintiff

Bruce Morrison

Respondent/plaintiff

Beverley Morrison

Respondent/plaintiff

Colleen Morrison

Respondent/plaintiff (also Defendant/appellant in Related Procedural Posture)

Royal & SunAlliance Insurance Company of Canada

Appellant/defendant

Trevor Squance (deceased) by his Litigation Administrator Douglas Strelshik

Appellant/defendant (deceased)

Leonard Hochberg (Litigation Administrator for the Estate of Trevor Squance)

Appellant/defendant (estate Litigation Administrator)

Procedural Posture

Civil / Appeal From Superior Court Decision on Motions to Determine Entitlement Under Family Protection Coverage Endorsement (insurance Coverage Appeal)

Legal Issues

  1. 1 Whether respondents are entitled to recover under the Family Protection Coverage (FPC) Endorsement up to its $1,000,000 limit
  2. 2 Whether para. 4 of the FPC Endorsement requires deducting liability limits of an insured who is jointly liable to any insured even if that insured does not claim under the FPC Endorsement
  3. 3 Whether insureds' unchallenged subjective understanding of coverage affects interpretation of the FPC Endorsement

Ratio Decidendi

Paragraph 4 of the standardized FPC Endorsement reduces the FPC limit only by the liability insurance limits of the inadequately insured motorist and by the limits of any person jointly liable for the particular claimant’s injuries; because no person was jointly liable with Squance for the respondents’ injuries, Royal’s maximum liability under the FPC Endorsement to those respondents is the full $1,000,000. Insureds’ uninformed expectations do not alter interpretation.

Court Disposition

Appeal dismissed.

Orders

  • Appeal dismissed
  • Respondents in the action brought by Allan Paul Ingleson to receive costs from Royal & SunAlliance Insurance Company of Canada in the amount of 10600 CAD