Canadian General Insurance Co. et al. v. Canadian Mercantile Insurance Co.

Canadian General Insurance Co. et al. v. Canadian Mercantile Insurance Co.

Section 13(6) of the Highway Code must be applied as written: it irrebuttably deems the registered transferor to remain the owner for purposes of liability insurance, so the buyer-driver was insured under the transferor’s policy via the omnibus clause; accordingly Mercantile, having paid victims under its insured’s...

Source-derived case information.

Citation
[1979] 2 SCR 17
Parties
Appellant Insurer: Canadian General Insurance Company; Appellant Heirs of Driver: Heirs of Bernard Tremblay; Respondent Insurer: Canadian Mercantile Insurance Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
8 May 1979
Procedural Posture
Appeal / Supreme Court of Canada on Appeal From the Court of Appeal for Quebec
Outcome
Appeal allowed
Legal Topics
Motor Vehicle Insurance, Omnibus Clause, Registration Presumption (statutory Fiction), Highway Code S.13(6), Highway Victims Indemnity Act Ss.4 and 7
Source Language
english
Insurance Statutory Interpretation Tort Motor Vehicle Insurance Omnibus Clause Registration Presumption (statutory Fiction) Highway Code S.13(6) Highway Victims Indemnity Act Ss.4 and 7

Source-derived case record

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Parties

Canadian General Insurance Company

Appellant Insurer

Heirs of Bernard Tremblay

Appellant Heirs of Driver

Canadian Mercantile Insurance Company

Respondent Insurer

Procedural Posture

Appeal / Supreme Court of Canada on Appeal From the Court of Appeal for Quebec

Legal Issues

  1. 1 Effect of transfer of ownership on liability insurance coverage
  2. 2 Whether s.13(6) of the Highway Code deems the registered transferor to remain owner for purposes of liability insurance
  3. 3 Whether insurer who paid victims can obtain reimbursement from other insurer or heirs

Ratio Decidendi

Section 13(6) of the Highway Code must be applied as written: it irrebuttably deems the registered transferor to remain the owner for purposes of liability insurance, so the buyer-driver was insured under the transferor’s policy via the omnibus clause; accordingly Mercantile, having paid victims under its insured’s liability coverage, cannot recover from Canadian General or the heirs.

Court Disposition

Appeal allowed

Orders

  • Decision of the Court of Appeal set aside
  • Judgment of the Superior Court restored