North Empire Fire Ins. Co. v. Vermette

North Empire Fire Ins. Co. v. Vermette

The appeal is allowed because the insured (Desrosiers) did not own the insured goods as owner; statutory condition no.10 and art.2480 C.C. require ownership as owner and an express specification of the insured's interest in the policy, so the policy is null and void and the trustee cannot claim the proceeds; knowledge of insurer's agents does not amend the written contract.

Citation
[1943] SCR 189
Parties
Appellant; Insurer: North Empire Fire Insurance Company; Respondent; Trustee in Bankruptcy of J.a. Desrosiers: J. Paul Vermette
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
2 April 1943
Procedural Posture
Civil Appeal (insurance) / Supreme Court of Canada on Appeal From Court of King's Bench, Province of Quebec
Outcome
Appeal allowed; judgment of the Court of King's Bench reversed; judgment of the Superior Court restored; costs to appellant.
Legal Topics
Insurable Interest, Prête Nom/mandate, Policy Validity, Statutory Condition No.10 (quebec Insurance Act S.240), Agency/knowledge of Insurer Agents, Trustee's Claim to Insurance Proceeds
Source Language
English
Insurance Law Civil Law (quebec) Bankruptcy Insurable Interest Prête Nom/mandate Policy Validity Statutory Condition No.10 (quebec Insurance Act S.240) Agency/knowledge of Insurer Agents +1 more

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Parties

North Empire Fire Insurance Company

Appellant; Insurer

J. Paul Vermette

Respondent; Trustee in Bankruptcy of J.a. Desrosiers

Procedural Posture

Civil Appeal (insurance) / Supreme Court of Canada on Appeal From Court of King's Bench, Province of Quebec

Legal Issues

  1. 1 Whether a policy is void where the insured did not 'own' the insured property as owner under statutory condition no.10
  2. 2 Whether a salaried employee acting as a figure‑head (prête-nom) may insure property owned by the employer as if he were the owner
  3. 3 Whether knowledge by insurer's agents of the true ownership validates an otherwise unlawful policy

Ratio Decidendi

The appeal is allowed because the insured (Desrosiers) did not own the insured goods as owner; statutory condition no.10 and art.2480 C.C. require ownership as owner and an express specification of the insured's interest in the policy, so the policy is null and void and the trustee cannot claim the proceeds; knowledge of insurer's agents does not amend the written contract.

Court Disposition

Appeal allowed; judgment of the Court of King's Bench reversed; judgment of the Superior Court restored; costs to appellant.

Orders

  • Appeal allowed with costs
  • Judgment of the Court of King's Bench (Q.R. 71 K.B. 224) reversed