Great Northern Insurance Co. v. Whitney

Great Northern Insurance Co. v. Whitney

The insurer could not avoid the policy because the alleged misstatement was not shown to be material in context, the application bore obvious alterations made or left by the insurer's agent whose knowledge is attributable to the insurer, and the insurer failed to inquire into the alterations; purchase price was not an absolute measure of value.

Citation
(1918) 57 SCR 543
Parties
Appellant/defendant: Great Northern Insurance Company; Respondent/plaintiff: William D. Whitney
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
11 March 1918
Procedural Posture
Appeal (insurance Contract Dispute) / Final Appeal to Supreme Court of Canada (on Appeal From Appellate Division, Supreme Court of Alberta)
Outcome
Appeal dismissed with costs; judgment of the Appellate Division of the Supreme Court of Alberta affirmed
Legal Topics
Misrepresentation, Materiality, Agency, Alteration of Application, Over Insurance
Source Language
English
Insurance Law Contract Law Misrepresentation Materiality Agency Alteration of Application Over Insurance

Case Brief

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Parties

Great Northern Insurance Company

Appellant/defendant

William D. Whitney

Respondent/plaintiff

Procedural Posture

Appeal (insurance Contract Dispute) / Final Appeal to Supreme Court of Canada (on Appeal From Appellate Division, Supreme Court of Alberta)

Legal Issues

  1. 1 Whether a false statement in an insurance application as to purchase price is material so as to avoid the policy
  2. 2 Whether obvious alterations on an application impose a duty on the insurer to inquire
  3. 3 Whether the agent's knowledge is attributable to the insurer or to the insured

Ratio Decidendi

The insurer could not avoid the policy because the alleged misstatement was not shown to be material in context, the application bore obvious alterations made or left by the insurer's agent whose knowledge is attributable to the insurer, and the insurer failed to inquire into the alterations; purchase price was not an absolute measure of value.

Court Disposition

Appeal dismissed with costs; judgment of the Appellate Division of the Supreme Court of Alberta affirmed

Orders

  • Appeal dismissed with costs
  • Judgment of Appellate Division of Supreme Court of Alberta affirmed