Torrop v. Imperial Fire Ins. Co.

Torrop v. Imperial Fire Ins. Co.

The bill of sale to the local agents constituted a change of interest that, under the explicit policy clause, forfeited the policy; the local agents lacked authority to waive that forfeiture and the company's resident secretary had no knowledge of the transfer, so the insurer did not elect to treat the policy as in force and is not liable.

Citation
(1896) 26 SCR 585
Parties
Appellant/plaintiff: Edward C. Torrop; Respondent/defendant: The Imperial Fire Insurance Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
5 November 1896
Procedural Posture
Appeal / On Appeal to the Supreme Court of Canada From the Supreme Court of New Brunswick
Outcome
Appeal dismissed with costs; judgment below varied to order entry of a verdict for the defendants instead of a nonsuit.
Legal Topics
Fire Insurance, Forfeiture for Change of Interest, Waiver, Agent Authority, Cancellation, Proofs of Loss
Source Language
English
Insurance Law Agency Law Contract Law Fire Insurance Forfeiture for Change of Interest Waiver Agent Authority Cancellation +1 more

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Parties

Edward C. Torrop

Appellant/plaintiff

The Imperial Fire Insurance Company

Respondent/defendant

Procedural Posture

Appeal / On Appeal to the Supreme Court of Canada From the Supreme Court of New Brunswick

Legal Issues

  1. 1 Whether a bill of sale/chattel mortgage that changed the insured's interest voided the policy under its change-of-interest clause
  2. 2 Whether the local agents (McAllister & Mott) had authority to waive the forfeiture or otherwise bind the insurer by recognition of the risk after the breach
  3. 3 Whether the insurer effectively cancelled the policy by notice and whether such notice required to be given to the insured rather than trustees or payees

Ratio Decidendi

The bill of sale to the local agents constituted a change of interest that, under the explicit policy clause, forfeited the policy; the local agents lacked authority to waive that forfeiture and the company's resident secretary had no knowledge of the transfer, so the insurer did not elect to treat the policy as in force and is not liable.

Court Disposition

Appeal dismissed with costs; judgment below varied to order entry of a verdict for the defendants instead of a nonsuit.

Orders

  • Appeal dismissed with costs.
  • Judgment of the Supreme Court of New Brunswick varied to order entry of a verdict for the defendants instead of directing a nonsuit.