Guerin v. The Manchester Fire Assurance Co.

Guerin v. The Manchester Fire Assurance Co.

The appeal is dismissed because (1) converting the premises from a dwelling to a hotel was a material change of risk that avoided the policy as to the insured interest absent written notice and payment of increased premium; (2) the named mortgagee had transferred his mortgage before the fire and thus had no insurable interest at the time of loss so could not recover or transfer a right he did not possess; (3) the post-loss assignment was not properly signified to the insurer in accordance with Civil Code art.1571 and so did not vest enforceable rights in appellant; and (4) required proofs and notice under the policy were not furnished and the arbitration/award condition precedent barred...

Citation
(1898) 29 SCR 139
Parties
Appellant/plaintiff: Edmund Guerin; Respondent/defendant: The Manchester Fire Assurance Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 November 1898
Procedural Posture
Fire Insurance Dispute on Appeal / Appeal to Supreme Court of Canada From Court of Queen's Bench for Lower Canada (appeal Side)
Outcome
Appeal dismissed
Legal Topics
Change of Risk, Mortgage Clause, Assignment of Policy Rights, Proofs and Notice of Loss, Condition Precedent, Insurable Interest, Statutory Conditions Applicability, Signification of Cession (assignment)
Source Language
English
Insurance Contract Property Civil Procedure Arbitration Change of Risk Mortgage Clause Assignment of Policy Rights +5 more

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Parties

Edmund Guerin

Appellant/plaintiff

The Manchester Fire Assurance Company

Respondent/defendant

Procedural Posture

Fire Insurance Dispute on Appeal / Appeal to Supreme Court of Canada From Court of Queen's Bench for Lower Canada (appeal Side)

Legal Issues

  1. 1 Whether converting insured premises from dwelling to hotel was a material change of risk voiding the policy
  2. 2 Whether a mortgagee who assigned his mortgage before the loss retained any recoverable insurable interest under the policy
  3. 3 Whether an assignment of rights under the policy made after the loss was effective without signification to the insurer under Civil Code art.1571

Ratio Decidendi

The appeal is dismissed because (1) converting the premises from a dwelling to a hotel was a material change of risk that avoided the policy as to the insured interest absent written notice and payment of increased premium; (2) the named mortgagee had transferred his mortgage before the fire and thus had no insurable interest at the time of loss so could not recover or transfer a right he did not possess; (3) the post-loss assignment was not properly signified to the insurer in accordance with Civil Code art.1571 and so did not vest enforceable rights in appellant; and (4) required proofs and notice under the policy were not furnished and the arbitration/award condition precedent barred...

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs