Sheppard and the Merchants Bank of Canada v. British Dominions General Ins. Co. of London England / Sheppard and the Merchants Bank of Canada v. Glens Falls Ins. Co. of Glenns Falls New York

Sheppard and the Merchants Bank of Canada v. British Dominions General Ins. Co. of London England / Sheppard and the Merchants Bank of Canada v. Glens Falls Ins. Co. of Glenns Falls New York

Majority restored the trial judge: s.2 of the Fire Insurance Policy Act authorizes relief for non‑compliance with condition 13 and, where relief is granted, the proofs are treated as effective for all purposes (including timing under condition 17), so the actions were not premature; appellate court should not...

Source-derived case information.

Citation
(1919) 58 SCR 551
Parties
Plaintiff/appellant: Robert Sheppard; Plaintiff/appellant: The Merchants Bank of Canada; Defendant/respondent: British Dominions General Insurance Co. of London, England; Defendant/respondent: Glens Falls Insurance Co., Glens Falls, New York
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 May 1919
Procedural Posture
Civil Appeal (insurance) / Appeal to the Supreme Court of Canada From the Court of Appeal for Saskatchewan; Final Judgment Delivered May 6, 1919
Outcome
Appeal allowed; judgment of trial court restored; judgment of the Court of Appeal for Saskatchewan reversed; Davies C.J. and Mignault J. dissenting
Legal Topics
Fire Insurance, Proofs of Loss, Notice of Loss, Statutory Policy Conditions, Relief From Forfeiture, Limitation of Actions
Source Language
english
Insurance Law Contract Law Civil Procedure Equity Fire Insurance Proofs of Loss Notice of Loss Statutory Policy Conditions +2 more

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Parties

Robert Sheppard

Plaintiff/appellant

The Merchants Bank of Canada

Plaintiff/appellant

British Dominions General Insurance Co. of London, England

Defendant/respondent

Glens Falls Insurance Co., Glens Falls, New York

Defendant/respondent

Procedural Posture

Civil Appeal (insurance) / Appeal to the Supreme Court of Canada From the Court of Appeal for Saskatchewan; Final Judgment Delivered May 6, 1919

Legal Issues

  1. 1 Whether s.2 of The Fire Insurance Policy Act permits relief for non‑compliance with statutory condition No.13 (proofs/notice of loss)
  2. 2 Whether relief under s.2 can affect the running of the delay period in statutory condition No.17 (30/60 days after completion of proofs) and thus render an action not premature
  3. 3 Whether insurers can rely on their own conduct (investigation/delay/objections) to defeat relief and insist on forfeiture

Ratio Decidendi

Majority restored the trial judge: s.2 of the Fire Insurance Policy Act authorizes relief for non‑compliance with condition 13 and, where relief is granted, the proofs are treated as effective for all purposes (including timing under condition 17), so the actions were not premature; appellate court should not disturb exercise of trial judge's discretion.

Court Disposition

Appeal allowed; judgment of trial court restored; judgment of the Court of Appeal for Saskatchewan reversed; Davies C.J. and Mignault J. dissenting

Orders

  • Appeal allowed with costs
  • Judgment of trial judge restored (relief under s.2 granted)