Employers' Liability Assur. Co. v. Lefaivre

Employers' Liability Assur. Co. v. Lefaivre

Majority held insurer was liable: the insurer's obligation to indemnify arose and was complete on date of the accident during the policy term and was not made conditional on payment of a supplementary premium due after the policy expired; insurer could not repudiate liability while retaining premiums and asserting a claim for the supplementary premium in bankruptcy; set‑off of the supplementary premium against the indemnity was not permitted because the debts were not equally liquidated and demandable before bankruptcy.

Citation
[1930] SCR 1
Parties
Appellant Insurer: Employers' Liability Assurance Company; Respondent Trustee: R. Ernest Lefaivre; Insured Employer: Duncan N. Dubé; Injured Employee/beneficiary: Lévesque
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
27 May 1929
Procedural Posture
Appeal to Supreme Court of Canada: Insurance Coverage Dispute Under Workmen's Compensation Act / Judgment on Appeal (decision Delivered May 27, 1929); Appeal Dismissed
Outcome
Appeal dismissed; judgment of Court of King’s Bench and Superior Court affirmed (majority).
Legal Topics
Workmen's Compensation, Indemnity Policies, Insurance Premiums (minimum/estimated/supplementary), Non Adimpleti Contractus (suspension for Non‑performance), Insurer Liability Timing, Set‑off/compensation Against Indemnity, Trustee in Bankruptcy Claims
Source Language
English
Labour Law Insurance Law Contract Law Bankruptcy Law Workmen's Compensation Indemnity Policies Insurance Premiums (minimum/estimated/supplementary) Non Adimpleti Contractus (suspension for Non‑performance) +3 more

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Parties

Employers' Liability Assurance Company

Appellant Insurer

R. Ernest Lefaivre

Respondent Trustee

Duncan N. Dubé

Insured Employer

Lévesque

Injured Employee/beneficiary

Procedural Posture

Appeal to Supreme Court of Canada: Insurance Coverage Dispute Under Workmen's Compensation Act / Judgment on Appeal (decision Delivered May 27, 1929); Appeal Dismissed

Legal Issues

  1. 1 Whether insurer was liable to indemnify for accident occurring during policy period despite unpaid supplementary premium due after policy expiry
  2. 2 Whether insurer's obligation accrues at date of accident or at notice/claim by employee
  3. 3 Effect of employer's bankruptcy on insurer's obligation and on insurer's right to retain or recover unpaid premium

Ratio Decidendi

Majority held insurer was liable: the insurer's obligation to indemnify arose and was complete on date of the accident during the policy term and was not made conditional on payment of a supplementary premium due after the policy expired; insurer could not repudiate liability while retaining premiums and asserting a claim for the supplementary premium in bankruptcy; set‑off of the supplementary premium against the indemnity was not permitted because the debts were not equally liquidated and demandable before bankruptcy.

Court Disposition

Appeal dismissed; judgment of Court of King’s Bench and Superior Court affirmed (majority).

Orders

  • Appellant insurer to pay $6,490 to respondent trustee for the benefit of the injured employee (Lévesque)
  • Trustee to hold the indemnity segregated for the benefit of Lévesque and to remit it to him; costs awarded against appellant