Prairie City Oil Co. v. Standard Mutual Fire Insurance Co.

Prairie City Oil Co. v. Standard Mutual Fire Insurance Co.

The majority held that (1) gasoline fell within the written description of the insured stock (as an illuminating oil or as 'other goods kept for sale') so the statutory exclusion could not be invoked to defeat the policy when the insurer's agents knew and accepted the risk; and (2) section 2 of R.S.M. 1902 c.87 authorizes the court to refuse to allow forfeiture for imperfect compliance with notice/proof requirements where the insurer received effective notice through its agents, was not prejudiced, and it would be inequitable to treat the insurance as void; accordingly the insurer could not rely on the failure to give written notice to defeat the claim (dissent as to notice issue by...

Citation
(1910) 44 SCR 40
Parties
Plaintiffs/appellants: Albert E. Lewis; George F. Campbell; George C. Hascall; Roy B. Robinette trading as Prairie City Oil Company; Defendant/respondent: The Standard Mutual Fire Insurance Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 November 1910
Procedural Posture
Appeal to Supreme Court of Canada / Final Appeal From Court of Appeal for Manitoba; Judgment Reversed in Part
Outcome
Appeal allowed with costs; judgment of Court of Appeal for Manitoba reversed in part; judgment entered for plaintiffs for amount of claim and costs
Legal Topics
Fire Insurance, Statutory Conditions, Notice of Loss, Proofs of Loss, Repugnancy Between Policy Text and Printed Statutory Conditions, Agency and Estoppel
Source Language
English
Insurance Contract Statutory Interpretation Equity/remedial Jurisdiction Fire Insurance Statutory Conditions Notice of Loss Proofs of Loss +2 more

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Parties

Albert E. Lewis; George F. Campbell; George C. Hascall; Roy B. Robinette trading as Prairie City Oil Company

Plaintiffs/appellants

The Standard Mutual Fire Insurance Company

Defendant/respondent

Procedural Posture

Appeal to Supreme Court of Canada / Final Appeal From Court of Appeal for Manitoba; Judgment Reversed in Part

Legal Issues

  1. 1 Whether gasoline was included in the insured stock as 'illuminating oils' or 'all other goods kept for sale' and therefore within the policy risk
  2. 2 Whether storage of gasoline without written permission under statutory condition 10(f) voided the policy
  3. 3 Whether failure to give written notice of loss under statutory condition 13(a) was a condition precedent fatal to recovery

Ratio Decidendi

The majority held that (1) gasoline fell within the written description of the insured stock (as an illuminating oil or as 'other goods kept for sale') so the statutory exclusion could not be invoked to defeat the policy when the insurer's agents knew and accepted the risk; and (2) section 2 of R.S.M. 1902 c.87 authorizes the court to refuse to allow forfeiture for imperfect compliance with notice/proof requirements where the insurer received effective notice through its agents, was not prejudiced, and it would be inequitable to treat the insurance as void; accordingly the insurer could not rely on the failure to give written notice to defeat the claim (dissent as to notice issue by...

Court Disposition

Appeal allowed with costs; judgment of Court of Appeal for Manitoba reversed in part; judgment entered for plaintiffs for amount of claim and costs

Orders

  • Appeal allowed with costs here and in the courts below
  • Judgment entered for the appellants for the amount of their claim with costs; Court of Appeal judgment reversed