Kungl c. Great Lakes Reinsurance Company et al.

Kungl c. Great Lakes Reinsurance Company et al.

The reinsurance treaties did not create privity in favour of the insureds nor establish Great Lakes as a co-insurer or an undeclared partnership; there was no contractual stipulation for third parties and no intention to assume obligations towards insureds; moreover the liquidator, authorized by the supervising court, had the exclusive standing to pursue claims against the reinsurers; therefore the garnishees' negative declarations were properly sustained and the appeal must be dismissed.

Citation
[1969] RCS 342
Parties
Appellant (plaintiff): Renate Kungl; Respondents (garnishees): The Great Lakes Reinsurance Company; Malcolm Herbert Blakely; Intervenor (trustee/liquidator): Jean Marien; Defendants (judgment Debtors): Laurier Cyr; Laurent Langevin
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
20 December 1968
Procedural Posture
Appeal / Appeal to the Supreme Court of Canada From Judgment of the Court of Queen's Bench, Appeal Side, Province of Quebec
Outcome
Appeal dismissed
Legal Topics
Reinsurance, Co Insurance, Stipulation for Third Party, Liquidation and Administration, Garnishment (saisie Arrêt), Undeclared Partnership, Civil Code Interpretation
Source Language
French
Insurance Bankruptcy and Insolvency Civil Procedure Contract Law Partnership/corporate Law Reinsurance Co Insurance Stipulation for Third Party +4 more

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Parties

Renate Kungl

Appellant (plaintiff)

The Great Lakes Reinsurance Company; Malcolm Herbert Blakely

Respondents (garnishees)

Jean Marien

Intervenor (trustee/liquidator)

Laurier Cyr; Laurent Langevin

Defendants (judgment Debtors)

Procedural Posture

Appeal / Appeal to the Supreme Court of Canada From Judgment of the Court of Queen's Bench, Appeal Side, Province of Quebec

Legal Issues

  1. 1 Whether reinsurer (Great Lakes) was a co-insurer liable directly to insured/creditor
  2. 2 Whether reinsurance treaties constituted a stipulation for the benefit of third parties (insureds) under Civil Code art.1029
  3. 3 Whether the reinsurance treaties constituted a contract of partnership/undeclared partnership under arts.1830-1831

Ratio Decidendi

The reinsurance treaties did not create privity in favour of the insureds nor establish Great Lakes as a co-insurer or an undeclared partnership; there was no contractual stipulation for third parties and no intention to assume obligations towards insureds; moreover the liquidator, authorized by the supervising court, had the exclusive standing to pursue claims against the reinsurers; therefore the garnishees' negative declarations were properly sustained and the appeal must be dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of Appeal (Quebec) and lower court confirmed