Mortgage Corporation of Nova Scotia v. Law Union & Rock Ins. Co. Ltd.

Mortgage Corporation of Nova Scotia v. Law Union & Rock Ins. Co. Ltd.

The Supreme Court of Canada dismissed the appeal, holding that the appellants failed to prove that a fire preceded the explosions (or that the explosions were coal‑gas explosions) as required to recover the full insured loss under the policy, and that there was no ground to upset the Supreme Court of Nova Scotia in banco which confined recovery to damage proved and directed a reference to quantify that damage.

Citation
[1937] SCR 74
Parties
Appellant; Mortgagee; Plaintiff: Mortgage Corporation of Nova Scotia; Respondent; Defendant; Insurer: Law Union & Rock Ins. Co. Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
27 October 1936
Procedural Posture
Appeal From Supreme Court of Nova Scotia in Banco / Final Disposition by Supreme Court of Canada (appeal Dismissed)
Outcome
Appeal dismissed with costs; judgment of Supreme Court of Nova Scotia in banco affirmed.
Legal Topics
Fire Insurance, Explosion, Cause of Loss, Statutory Policy Condition, Quantum of Recovery
Source Language
English
Insurance Fire Insurance Explosion Cause of Loss Statutory Policy Condition Quantum of Recovery

Case Brief

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Parties

Mortgage Corporation of Nova Scotia

Appellant; Mortgagee; Plaintiff

Law Union & Rock Ins. Co. Ltd.

Respondent; Defendant; Insurer

Procedural Posture

Appeal From Supreme Court of Nova Scotia in Banco / Final Disposition by Supreme Court of Canada (appeal Dismissed)

Legal Issues

  1. 1 Whether the fire preceded the explosion or the explosion preceded the fire
  2. 2 Whether explosions were coal gas explosions covered by the policy statutory condition
  3. 3 Whether statutory condition 6 entitled the mortgagee to recover the full claimed loss

Ratio Decidendi

The Supreme Court of Canada dismissed the appeal, holding that the appellants failed to prove that a fire preceded the explosions (or that the explosions were coal‑gas explosions) as required to recover the full insured loss under the policy, and that there was no ground to upset the Supreme Court of Nova Scotia in banco which confined recovery to damage proved and directed a reference to quantify that damage.

Court Disposition

Appeal dismissed with costs; judgment of Supreme Court of Nova Scotia in banco affirmed.

Orders

  • Appeal dismissed with costs.
  • Judgment of the Supreme Court of Nova Scotia in banco affirmed.