Survey Aircraft Limited v. Stevenson

Survey Aircraft Limited v. Stevenson

The aircraft was operated in violation of the Certificate of Airworthiness by carrying a passenger; exclusion J of the insurance certificate unambiguously excludes coverage for any flight during which terms of the Certificate of Airworthiness are violated; the insured failed to disclose the restrictive terms when obtaining insurance; therefore the loss is excluded and the insurer is not liable.

Citation
[1962] SCR 555
Parties
Plaintiff/appellant: Survey Aircraft Ltd.; Defendant/respondent: R. C. Stevenson (Attorney in Canada for the Non-Marine Underwriters at Lloyd's, London); Defendant/respondent: Orion Insurance Co. Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 May 1962
Procedural Posture
Appeal to Supreme Court of Canada — Insurance (aviation) / Final Judgment on Appeal From the Court of Appeal for British Columbia
Outcome
Appeal dismissed; judgment of the Court of Appeal for British Columbia affirmed
Legal Topics
Policy Exclusions, Certificate of Airworthiness, Non Disclosure of Material Facts, Contra Proferentem, Interpretation of Insurance Contracts
Source Language
English
Insurance Law Aviation Law Administrative/regulatory Law Contract Law Policy Exclusions Certificate of Airworthiness Non Disclosure of Material Facts Contra Proferentem +1 more

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Parties

Survey Aircraft Ltd.

Plaintiff/appellant

R. C. Stevenson (Attorney in Canada for the Non-Marine Underwriters at Lloyd's, London)

Defendant/respondent

Orion Insurance Co. Ltd.

Defendant/respondent

Procedural Posture

Appeal to Supreme Court of Canada — Insurance (aviation) / Final Judgment on Appeal From the Court of Appeal for British Columbia

Legal Issues

  1. 1 Whether exclusion clause J excludes coverage where flight violated terms of the Certificate of Airworthiness by carrying a passenger
  2. 2 Whether the insured's failure to disclose restrictive terms of the Certificate of Airworthiness vitiates coverage or affects construction of the policy
  3. 3 Whether the inclusion of "passenger carrying" in the policy's definition of insured use overrides the exclusion tied to the Certificate of Airworthiness

Ratio Decidendi

The aircraft was operated in violation of the Certificate of Airworthiness by carrying a passenger; exclusion J of the insurance certificate unambiguously excludes coverage for any flight during which terms of the Certificate of Airworthiness are violated; the insured failed to disclose the restrictive terms when obtaining insurance; therefore the loss is excluded and the insurer is not liable.

Court Disposition

Appeal dismissed; judgment of the Court of Appeal for British Columbia affirmed

Orders

  • Appeal dismissed with costs
  • Action dismissed (plaintiff's claim for indemnity denied)