United States Fidelity and Guarantee Co. v. The Fruit Auction of Montreal

United States Fidelity and Guarantee Co. v. The Fruit Auction of Montreal

Under Quebec law and R.S.Q. 1909 s.7028, the insurer cannot rely on pre-issue answers or renewal certificates as warranties unless those terms are set out in full in the written policy or renewal instrument; the statements here were not incorporated and were therefore at most representations, which were substantially true and did not involve material concealment, so the insurer is liable and the appeal is dismissed.

Citation
[1929] SCR 1
Parties
Appellant (insurer): United States Fidelity And Guaranty Company; Respondent (insured/employer): The Fruit Auction of Montreal Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
12 June 1928
Procedural Posture
Appeal Concerning Insurance/fidelity Bond Dispute / On Appeal to the Supreme Court of Canada From the Court of King’s Bench, Province of Quebec (appeal Side)
Outcome
Appeal dismissed; judgment of the Court of King’s Bench, Quebec affirmed.
Legal Topics
Fidelity Bond, Warranty Vs Representation, Misrepresentation and Concealment, Conditions Precedent, Policy Incorporation, Renewal Certificates, Materiality of Representations
Source Language
English
Insurance Law Contract Law Quebec Civil Code Interpretation Fidelity Bond Warranty Vs Representation Misrepresentation and Concealment Conditions Precedent Policy Incorporation +2 more

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Parties

United States Fidelity And Guaranty Company

Appellant (insurer)

The Fruit Auction of Montreal Limited

Respondent (insured/employer)

Procedural Posture

Appeal Concerning Insurance/fidelity Bond Dispute / On Appeal to the Supreme Court of Canada From the Court of King’s Bench, Province of Quebec (appeal Side)

Legal Issues

  1. 1 Whether answers to insurer’s pre-issuance questions and renewal certificates constituted warranties or conditions precedent
  2. 2 Whether those statements were incorporated into the written policy under R.S.Q. 1909 s.7028 and art.2491 C.C.
  3. 3 Whether the insured made material misrepresentations or concealments that would avoid the policy

Ratio Decidendi

Under Quebec law and R.S.Q. 1909 s.7028, the insurer cannot rely on pre-issue answers or renewal certificates as warranties unless those terms are set out in full in the written policy or renewal instrument; the statements here were not incorporated and were therefore at most representations, which were substantially true and did not involve material concealment, so the insurer is liable and the appeal is dismissed.

Court Disposition

Appeal dismissed; judgment of the Court of King’s Bench, Quebec affirmed.

Orders

  • Appeal dismissed with costs
  • Judgment of Court of King’s Bench affirming the Superior Court maintained; respondent entitled to recover under the policies (as determined below by lower courts)