Clark v. Scottish Imperial Insurance Co.

Clark v. Scottish Imperial Insurance Co.

The verbal agreement supplemented by actual advances created an equitable lien/assignment on the specific vessel in course of construction; that equitable interest was an insurable interest and entitled the plaintiff to recover under the policy; the non‑suit below was reversed.

Citation
(1879) 4 SCR 192
Parties
Appellant/assured: James Clark; Respondent/insurer: The Scottish Imperial Insurance Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
12 December 1879
Procedural Posture
Action on a Fire Insurance Policy / Appeal to Supreme Court of Canada From Supreme Court of New Brunswick Judgment Granting a Non‑suit (rule Nisi Made Absolute Below)
Outcome
Appeal allowed; judgment below setting aside plaintiff's verdict and entering a non‑suit reversed
Legal Topics
Insurable Interest, Equitable Lien, Specific Performance/part Performance, Assignment of Future Property, Statute of Frauds
Source Language
English
Insurance Equity Property Contract Insurable Interest Equitable Lien Specific Performance/part Performance Assignment of Future Property +1 more

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Parties

James Clark

Appellant/assured

The Scottish Imperial Insurance Company

Respondent/insurer

Procedural Posture

Action on a Fire Insurance Policy / Appeal to Supreme Court of Canada From Supreme Court of New Brunswick Judgment Granting a Non‑suit (rule Nisi Made Absolute Below)

Legal Issues

  1. 1 Whether plaintiff had an insurable interest in a vessel in course of construction
  2. 2 Whether oral agreement plus advances created an equitable lien or equitable assignment on a specific chattel not fully completed
  3. 3 Whether equity will recognize and protect an interest in future or in‑progress property sufficient for insurance purposes

Ratio Decidendi

The verbal agreement supplemented by actual advances created an equitable lien/assignment on the specific vessel in course of construction; that equitable interest was an insurable interest and entitled the plaintiff to recover under the policy; the non‑suit below was reversed.

Court Disposition

Appeal allowed; judgment below setting aside plaintiff's verdict and entering a non‑suit reversed

Orders

  • Appeal allowed with costs
  • Rule nisi made absolute below discharged and non‑suit vacated