Ellis v. London-Canada Insurance Co.

Ellis v. London-Canada Insurance Co.

Because the insured surrendered the policy at the insurer's request and accepted return of the full premium, the parties mutually rescinded the insurance contract prior to the accident; Statutory Condition 12(2) applies only to unilateral cancellations and therefore cannot be invoked to render the policy effective at the time of the accident.

Citation
[1954] SCR 28
Parties
Appellant/plaintiff: George William Ellis; Respondent/defendant: London-Canada Insurance Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
26 January 1954
Procedural Posture
Civil Appeal (insurance) / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal dismissed; decision of the Court of Appeal for Ontario affirmed.
Legal Topics
Policy Cancellation, Surrender of Policy, Rescission by Agreement, Statutory Condition 12(2), Notice Requirements
Source Language
English
Insurance Law Policy Cancellation Surrender of Policy Rescission by Agreement Statutory Condition 12(2) Notice Requirements

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Parties

George William Ellis

Appellant/plaintiff

London-Canada Insurance Company

Respondent/defendant

Procedural Posture

Civil Appeal (insurance) / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether surrender of a policy by insured at insurer's request and acceptance of return premium constitutes mutual rescission
  2. 2 Whether Statutory Condition 12(2) (s.197 The Insurance Act, R.S.O. 1950 c.183) applies where the parties have mutually agreed to cancel the policy
  3. 3 Whether the policy was in force at the time of the accident

Ratio Decidendi

Because the insured surrendered the policy at the insurer's request and accepted return of the full premium, the parties mutually rescinded the insurance contract prior to the accident; Statutory Condition 12(2) applies only to unilateral cancellations and therefore cannot be invoked to render the policy effective at the time of the accident.

Court Disposition

Appeal dismissed; decision of the Court of Appeal for Ontario affirmed.

Orders

  • Appeal dismissed with costs throughout