Employers’ Liability Assurance Corp. Ltd. et al. v. Foundation Co. of Canada Ltd.

Employers’ Liability Assurance Corp. Ltd. et al. v. Foundation Co. of Canada Ltd.

The appeal was dismissed because the Court found the underlying conduct constituted ordinary negligence, thus the action in warranty against the insurers was valid and the insurers were not excused from liability.

Citation
[1977] 2 SCR 413
Parties
Defendant in Warranty: Employers’ Liability Assurance Corp. Ltd.; Defendant in Warranty: The British Northwestern Insurance Company Limited; Defendant in Warranty: The London and Lancashire Guarantee and Accident Co. of Canada; Defendant in Warranty: Royal Insurance Company, Limited; Plaintiff in Warranty: The Foundation Company of Canada Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 March 1977
Procedural Posture
Insurance Liability – Action in Warranty / Appeal to Supreme Court of Canada From Court of Appeal for Quebec
Outcome
Appeal dismissed with costs.
Legal Topics
Liability Insurance, Ordinary Negligence, Action in Warranty, Fault of Insured
Source Language
English
Insurance Tort Civil Procedure Liability Insurance Ordinary Negligence Action in Warranty Fault of Insured

Case Brief

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Parties

Employers’ Liability Assurance Corp. Ltd.

Defendant in Warranty

The British Northwestern Insurance Company Limited

Defendant in Warranty

The London and Lancashire Guarantee and Accident Co. of Canada

Defendant in Warranty

Royal Insurance Company, Limited

Defendant in Warranty

The Foundation Company of Canada Limited

Plaintiff in Warranty

Procedural Posture

Insurance Liability – Action in Warranty / Appeal to Supreme Court of Canada From Court of Appeal for Quebec

Legal Issues

  1. 1 Whether the insured’s conduct amounted to ordinary negligence for purposes of liability insurance coverage
  2. 2 Whether an action in warranty against the insurers is valid given the nature of the insured’s fault

Ratio Decidendi

The appeal was dismissed because the Court found the underlying conduct constituted ordinary negligence, thus the action in warranty against the insurers was valid and the insurers were not excused from liability.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.