Keefer v. Phoenix Insurance Co. of Hartford

Keefer v. Phoenix Insurance Co. of Hartford

The Supreme Court allowed the appeal and restored the trial judgment: where an unpaid vendor with legal title effects insurance on property and the policy form and surrounding evidence show an intention to insure the whole property, the vendor may recover the full insured value upon loss even though his beneficial interest is limited; nondisclosure of the vendee's equitable interest is not fatal absent a requirement to disclose.

Citation
(1901) 31 SCR 144
Parties
Appellant (plaintiff): Hugh P. Keefer; Appellant (plaintiff): The Quebec Bank; Respondent (defendant): The Phœnix Insurance Company of Hartford
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 February 1901
Procedural Posture
Appeal Civil Insurance / Appeal to Supreme Court of Canada From Court of Appeal for Ontario; Final Judgment on Appeal
Outcome
Appeal allowed; judgment of the Court of Appeal reversed and trial judgment restored in favour of the plaintiffs.
Legal Topics
Insurable Interest, Unpaid Vendor, Policy Construction, Disclosure of Interest, Indemnity
Source Language
English
Insurance Property Contract Insurable Interest Unpaid Vendor Policy Construction Disclosure of Interest Indemnity

Case Brief

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Parties

Hugh P. Keefer

Appellant (plaintiff)

The Quebec Bank

Appellant (plaintiff)

The Phœnix Insurance Company of Hartford

Respondent (defendant)

Procedural Posture

Appeal Civil Insurance / Appeal to Supreme Court of Canada From Court of Appeal for Ontario; Final Judgment on Appeal

Legal Issues

  1. 1 Whether an unpaid vendor who insures property may recover the full value of the property despite having only a limited beneficial interest
  2. 2 Whether the vendor was required to disclose the vendee's interest or the vendor's non‑exclusive ownership in the policy
  3. 3 Whether the printed statutory form policy limited recovery to the assured's beneficial interest or permitted recovery of the whole insured value when so intended

Ratio Decidendi

The Supreme Court allowed the appeal and restored the trial judgment: where an unpaid vendor with legal title effects insurance on property and the policy form and surrounding evidence show an intention to insure the whole property, the vendor may recover the full insured value upon loss even though his beneficial interest is limited; nondisclosure of the vendee's equitable interest is not fatal absent a requirement to disclose.

Court Disposition

Appeal allowed; judgment of the Court of Appeal reversed and trial judgment restored in favour of the plaintiffs.

Orders

  • Appeal allowed with costs
  • Judgment restored for plaintiffs awarding full loss under the policy (amount claimed)