Forgotten Treasures International Inc. v. Lloyd’s Underwriters

Forgotten Treasures International Inc. v. Lloyd’s Underwriters

The chambers judge did not err in setting aside the default judgment: communications showed an active, ongoing dispute and the insurers had an arguable defence worthy of investigation based on policy interpretation issues and disclosure (including Merx's statement); the discretionary Miracle Feeds factors were properly applied and the default judgment was therefore set aside.

Citation
2020 BCCA 341
Parties
Appellant (plaintiff): Forgotten Treasures International Inc.; Respondent (defendant): Lloyd's Underwriters; Respondent (defendant): Endeavour Insurance Services Limited; Respondent (defendant): Hub International Canada West ULC; Respondent (defendant): Hub International Limited; Respondent (defendant): Mark Loewen
Court
British Columbia Court of Appeal
Jurisdiction
Canada
Judgment Date
30 November 2020
Procedural Posture
Appeal From Chambers Decision Setting Aside Default Judgment in Insurance Coverage Action / Appeal (judgment on Application to Set Aside Default Judgment)
Outcome
Appeal dismissed; chambers order setting aside default judgment upheld
Legal Topics
Default Judgment, Setting Aside Default Judgment, Policy Interpretation, Two Person Accompanying Warranty, Territorial Limits, Personal Conveyance Clause, Baggage Warranty, Discretionary Review
Source Language
English
Insurance Law Contract Law Civil Procedure Professional Conduct Appellate Review Default Judgment Setting Aside Default Judgment Policy Interpretation +5 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 11 Party arguments 2
Sign in to unlock

Parties

Forgotten Treasures International Inc.

Appellant (plaintiff)

Lloyd's Underwriters

Respondent (defendant)

Endeavour Insurance Services Limited

Respondent (defendant)

Hub International Canada West ULC

Respondent (defendant)

Hub International Limited

Respondent (defendant)

Mark Loewen

Respondent (defendant)

Procedural Posture

Appeal From Chambers Decision Setting Aside Default Judgment in Insurance Coverage Action / Appeal (judgment on Application to Set Aside Default Judgment)

Legal Issues

  1. 1 Whether the defendant's failure to file a response was wilful or deliberate
  2. 2 Whether the defendant had a defence worthy of investigation under Miracle Feeds
  3. 3 Proper interpretation of Policy clauses (Two Person Accompanying Warranty, Personal Conveyance Clause, Baggage Warranty, Territorial Limits)

Ratio Decidendi

The chambers judge did not err in setting aside the default judgment: communications showed an active, ongoing dispute and the insurers had an arguable defence worthy of investigation based on policy interpretation issues and disclosure (including Merx's statement); the discretionary Miracle Feeds factors were properly applied and the default judgment was therefore set aside.

Court Disposition

Appeal dismissed; chambers order setting aside default judgment upheld

Orders

  • Appeal dismissed
  • Order setting aside the Default Judgment upheld