Travelers Insurance Co. of Canada v. Corriveau et al.

Travelers Insurance Co. of Canada v. Corriveau et al.

Majority held that the insurer undertook to pay the interest which the insured may be ordered to pay under art.1056c C.C.; the interest in the first paragraph and the additional indemnity in the second paragraph are both damages for delay and thus the indemnity is included within the insurer's contractual obligation to pay interest accrued on its guarantee, subject to the policy limit of $35,000.

Citation
[1982] 2 SCR 866
Parties
Appellant (garnishee): Travelers Insurance Company of Canada; Respondent (plaintiff Ès Qualités): Polydore Corriveau; Respondent (defendant): Serge Péloquin
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 December 1982
Procedural Posture
Civil Appeal (insurance/garnishment) / On Appeal to the Supreme Court of Canada From the Quebec Court of Appeal
Outcome
Appeal dismissed (majority); McIntyre and Lamer JJ. dissenting
Legal Topics
Motor Vehicle Accident, Garnishment, Interpretation of Insurance Policy, Indemnity Under Art. 1056c C.c., Distinction Between Interest and Indemnity, Application of Highway Victims Indemnity Fund V. Martineau
Source Language
English
Insurance Contract Civil Liability Civil Procedure Statutory Interpretation Interest Law Motor Vehicle Accident Garnishment +4 more

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Parties

Travelers Insurance Company of Canada

Appellant (garnishee)

Polydore Corriveau

Respondent (plaintiff Ès Qualités)

Serge Péloquin

Respondent (defendant)

Procedural Posture

Civil Appeal (insurance/garnishment) / On Appeal to the Supreme Court of Canada From the Quebec Court of Appeal

Legal Issues

  1. 1 Whether the word "interest" in the insurers policy clause "interest accrued on the amount of its guarantee from the date when the action was instituted" includes the additional indemnity provided by second paragraph of art. 1056c C.C.
  2. 2 Whether the insurer is liable to pay that indemnity beyond the policy limit
  3. 3 How art. 1056c C.C. should be characterized for purposes of contractual obligation (interest vs. moratory damages)

Ratio Decidendi

Majority held that the insurer undertook to pay the interest which the insured may be ordered to pay under art.1056c C.C.; the interest in the first paragraph and the additional indemnity in the second paragraph are both damages for delay and thus the indemnity is included within the insurer's contractual obligation to pay interest accrued on its guarantee, subject to the policy limit of $35,000.

Court Disposition

Appeal dismissed (majority); McIntyre and Lamer JJ. dissenting

Orders

  • Appeal dismissed with costs
  • Insurer liable to pay interest including the additional indemnity under second paragraph of art.1056c C.C., up to the policy limit of $35,000