American Automobile Ins. Co. v. Dickson

American Automobile Ins. Co. v. Dickson

The Supreme Court affirmed the lower courts: intoxication of the insured was not proved; although negligent and excessive speed were found, the conduct did not attain the high degree of negligence or moral culpability necessary to constitute criminal misconduct; clause 5 does not, in ordinary construction, apply to the owner driving his own car; accordingly the insurer remained liable and the appeals were dismissed.

Citation
[1943] SCR 143
Parties
Appellant; Defendant in Warranty: American Automobile Insurance Co.; Respondent; Principal Defendant and Plaintiff in Warranty: Dame Annie Wallace Dickson; Principal Plaintiff: James Buchanan Weir; Principal Plaintiff: Margaret C. Bruce Cameron
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
23 February 1943
Procedural Posture
Appeal Concerning Actions in Warranty Under a Public Liability Automobile Insurance Policy / Final Appeal to the Supreme Court of Canada From the Court of King's Bench, Quebec (appeal Side)
Outcome
Appeals dismissed; judgments of the Superior Court and Court of King's Bench affirmed; insurer condemned to indemnify under the policy.
Legal Topics
Intoxication, Excessive Speed, Public Liability Insurance, Exclusion Clause (clause 5), Criminal Negligence, Concurrent Findings, Indemnity, Policy Interpretation
Source Language
English
Motor Vehicles Insurance Law Torts Criminal Law Public Policy Intoxication Excessive Speed Public Liability Insurance +5 more

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Parties

American Automobile Insurance Co.

Appellant; Defendant in Warranty

Dame Annie Wallace Dickson

Respondent; Principal Defendant and Plaintiff in Warranty

James Buchanan Weir

Principal Plaintiff

Margaret C. Bruce Cameron

Principal Plaintiff

Procedural Posture

Appeal Concerning Actions in Warranty Under a Public Liability Automobile Insurance Policy / Final Appeal to the Supreme Court of Canada From the Court of King's Bench, Quebec (appeal Side)

Legal Issues

  1. 1 Whether insurer is liable under the public liability policy given alleged intoxication of insured driver
  2. 2 Whether clause 5's phrase 'intoxicated person' applies to the owner/insured driving the car
  3. 3 Whether excessive speed/negligence by the driver amounts to criminal misconduct voiding the policy on public policy grounds

Ratio Decidendi

The Supreme Court affirmed the lower courts: intoxication of the insured was not proved; although negligent and excessive speed were found, the conduct did not attain the high degree of negligence or moral culpability necessary to constitute criminal misconduct; clause 5 does not, in ordinary construction, apply to the owner driving his own car; accordingly the insurer remained liable and the appeals were dismissed.

Court Disposition

Appeals dismissed; judgments of the Superior Court and Court of King's Bench affirmed; insurer condemned to indemnify under the policy.

Orders

  • Appeals dismissed with costs
  • Judgments of lower courts affirmed