Evangeline Fruit Co. v. Provincial Fire Ins. Co. of Canada

Evangeline Fruit Co. v. Provincial Fire Ins. Co. of Canada

The Court allowed the appeal: (1) gasoline kept in a barrel 15–16 feet away under an adjacent platform was not "kept or stored in the building" and therefore not a breach of the condition; (2) because the insurer knew a gasoline engine was used, it must have contemplated a reasonable nearby supply and the precise location was not a material undisclosed circumstance that avoided the policy; and (3) the insurer's local agents had knowledge of concurrent insurance such that the insurer could not rely on omissions in the issued policy (waiver/estoppel).

Citation
(1915) 51 SCR 474
Parties
Appellant / Plaintiff: Evangeline Fruit Company; Appellant / Plaintiff: Another; Respondent / Defendant: Provincial Fire Insurance Company of Canada
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
24 June 1915
Procedural Posture
Civil Appeal (insurance) / Appeal to the Supreme Court of Canada; Final Judgment on Appeal
Outcome
Appeal allowed; judgment of trial judge restored; costs awarded to appellants
Legal Topics
Non Disclosure, Statutory Policy Conditions, Materiality of Risk, Policy Construction, Agency and Waiver
Source Language
English
Insurance Contract Non Disclosure Statutory Policy Conditions Materiality of Risk Policy Construction Agency and Waiver

Case Brief

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Parties

Evangeline Fruit Company

Appellant / Plaintiff

Another

Appellant / Plaintiff

Provincial Fire Insurance Company of Canada

Respondent / Defendant

Procedural Posture

Civil Appeal (insurance) / Appeal to the Supreme Court of Canada; Final Judgment on Appeal

Legal Issues

  1. 1 Whether storing a barrel of gasoline 15–16 feet from the insured building breached the policy condition prohibiting more than five gallons of gasoline being "kept or stored" in the building
  2. 2 Whether non‑disclosure of the presence/location of the gasoline barrel was a circumstance material to the risk that voided the policy
  3. 3 Whether the insurers could rely on condition regarding prior or concurrent insurances given the knowledge and conduct of their local agents (waiver/estoppel)

Ratio Decidendi

The Court allowed the appeal: (1) gasoline kept in a barrel 15–16 feet away under an adjacent platform was not "kept or stored in the building" and therefore not a breach of the condition; (2) because the insurer knew a gasoline engine was used, it must have contemplated a reasonable nearby supply and the precise location was not a material undisclosed circumstance that avoided the policy; and (3) the insurer's local agents had knowledge of concurrent insurance such that the insurer could not rely on omissions in the issued policy (waiver/estoppel).

Court Disposition

Appeal allowed; judgment of trial judge restored; costs awarded to appellants

Orders

  • Appeal allowed with costs
  • Judgment of the trial court restored in favour of the appellants for the amount insured