Eichmanis v. Wawanesa Mutual Insurance Company

Eichmanis v. Wawanesa Mutual Insurance Company

The court held that the contractual criminal act exclusion unambiguously excludes coverage for injuries caused by criminal acts including criminal negligence; s.118 of the Insurance Act does not prevent enforcement of such an exclusion when the contract otherwise provides; accordingly neither insurer was required to indemnify the plaintiff for damages caused by the insured youth; factual finding that the youth was living in the aunt and uncle's household was upheld and he was not insured under his mother's policy.

Citation
2007 ONCA 92
Parties
Plaintiff/respondent/appellant by Way of Cross Appeal: Ryan Eichmanis; Plaintiff/respondent/appellant by Way of Cross Appeal: Bonnie Eichmanis; Plaintiff/respondent/appellant by Way of Cross Appeal: Ken Eichmanis; Plaintiff/respondent/appellant by Way of Cross Appeal: James Eichmanis; Defendant/appellant/respondent by Way of Cross Appeal: The Wawanesa Mutual Insurance Company; Defendant/respondent/appellant by Way of Cross Appeal: Commercial Union Canada (CGU/Aviva Canada Inc.)
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
13 February 2007
Procedural Posture
Civil Appeal / Court of Appeal Decision on Cross Appeal From Motion Judge Order
Outcome
Appeal allowed in part. Motion judge's ruling that criminal act exclusion did not apply set aside; insurers not required to indemnify; finding that youth was insured under aunt and uncle upheld; finding he was not insured under his mother's policy upheld; Sanderson costs order set aside.
Legal Topics
Insurance Coverage, Criminal Act Exclusion, Interpretation of S.118 Insurance Act, Sanderson Costs Order, Household Residence for Policy Coverage
Source Language
English

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Parties

Ryan Eichmanis

Plaintiff/respondent/appellant by Way of Cross Appeal

Bonnie Eichmanis

Plaintiff/respondent/appellant by Way of Cross Appeal

Ken Eichmanis

Plaintiff/respondent/appellant by Way of Cross Appeal

James Eichmanis

Plaintiff/respondent/appellant by Way of Cross Appeal

The Wawanesa Mutual Insurance Company

Defendant/appellant/respondent by Way of Cross Appeal

Commercial Union Canada (CGU/Aviva Canada Inc.)

Defendant/respondent/appellant by Way of Cross Appeal

Procedural Posture

Civil Appeal / Court of Appeal Decision on Cross Appeal From Motion Judge Order

  1. 1 Whether criminal negligence causing bodily harm is a "criminal act" within the policy exclusion
  2. 2 Whether the youth was "living in the same household" for purposes of homeowners' policy coverage
  3. 3 Whether s.118 of the Insurance Act limits the operation of a contractual criminal act exclusion

Ratio Decidendi

The court held that the contractual criminal act exclusion unambiguously excludes coverage for injuries caused by criminal acts including criminal negligence; s.118 of the Insurance Act does not prevent enforcement of such an exclusion when the contract otherwise provides; accordingly neither insurer was required to indemnify the plaintiff for damages caused by the insured youth; factual finding that the youth was living in the aunt and uncle's household was upheld and he was not insured under his mother's policy.

Court Disposition

Appeal allowed in part. Motion judge's ruling that criminal act exclusion did not apply set aside; insurers not required to indemnify; finding that youth was insured under aunt and uncle upheld; finding he was not insured under his mother's policy upheld; Sanderson costs order set aside.

Orders

  • Wawanesa's appeal allowed on exclusion; motion judge's order on indemnity set aside
  • Ryan P. is insured under the Wawanesa policy of John and Catherine Prystay