Sampson v. AA Munro Insurance

Sampson v. AA Munro Insurance

The broker breached the duty of care by failing to explain the limitations of the policy and by leaving a reasonable impression that the Claimants had replacement-cost coverage; the broker is liable for the claimant's expectation loss measured as the shortfall between the expected replacement amount and the insurer...

Source-derived case information.

Citation
2009 NSSM 44
Parties
Claimant: Joey Sampson; Claimant: Anita Sampson; Defendant: AA Munro Insurance
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
14 September 2009
Procedural Posture
Small Claims Court / Final Decision
Outcome
Claim allowed in favour of Claimants; defendant liable for negligence in arranging insurance.
Legal Topics
Insurance Broker Duty of Care, Misrepresentation by Broker, Damages — Expectation Loss, Costs
Source Language
english
Insurance Tort Insurance Broker Duty of Care Misrepresentation by Broker Damages — Expectation Loss Costs

Source-derived case record

Summary, issues, holding and outcome

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Parties

Joey Sampson

Claimant

Anita Sampson

Claimant

AA Munro Insurance

Defendant

Procedural Posture

Small Claims Court / Final Decision

Legal Issues

  1. 1 Whether the insurance broker owed a duty to procure replacement cost coverage and to explain coverage options to the clients
  2. 2 Whether the defendant breached that duty by failing to explain differences between replacement value and depreciated (actual cash) value and by creating a misleading impression
  3. 3 Proper measure of damages where claimant reasonably expected replacement-cost coverage and received a depreciated-value settlement

Ratio Decidendi

The broker breached the duty of care by failing to explain the limitations of the policy and by leaving a reasonable impression that the Claimants had replacement-cost coverage; the broker is liable for the claimant's expectation loss measured as the shortfall between the expected replacement amount and the insurer settlement plus awarded costs.

Court Disposition

Claim allowed in favour of Claimants; defendant liable for negligence in arranging insurance.

Orders

  • Defendant to pay damages of 5435.00 CAD to the Claimants
  • Defendant to pay costs of 239.35 CAD to the Claimants