Kiernan v. Metropolitan Life Ins. Co.

Kiernan v. Metropolitan Life Ins. Co.

Majority: The insured's persistent laryngitis, recurrent extinction of voice, consultations with physicians and treatment with nitrate of silver were material facts he was bound to disclose; their concealment amounted to material misrepresentation that actually induced the insurer to issue the policies; a photographic copy of the application affixed to the policy substantially complied with the statutory requirement that contract terms be set out on the instrument, so the policies were voidable and the insurer's refusal to pay was justified. Dissent: The respondent failed to prove materiality; the laryngitis was a banal condition not affecting risk and the trial judge's finding should be...

Citation
[1925] SCR 600
Parties
Appellant/plaintiff: Dame Mabel Kiernan; Respondent/defendant: Metropolitan Life Insurance Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 October 1925
Procedural Posture
Life Insurance Dispute (misrepresentation/non Disclosure) / Appeal to Supreme Court of Canada From Court of King's Bench, Province of Quebec
Outcome
Appeal dismissed; judgment of the Court of King's Bench dismissing the appellant's action affirmed by the Supreme Court of Canada (majority).
Legal Topics
Misrepresentation, Non Disclosure, Materiality of Statements, Medical Disclosure, Application as Part of Policy
Source Language
English
Insurance Law Contract Law Quebec Civil Code Interpretation Misrepresentation Non Disclosure Materiality of Statements Medical Disclosure Application as Part of Policy

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Parties

Dame Mabel Kiernan

Appellant/plaintiff

Metropolitan Life Insurance Company

Respondent/defendant

Procedural Posture

Life Insurance Dispute (misrepresentation/non Disclosure) / Appeal to Supreme Court of Canada From Court of King's Bench, Province of Quebec

Legal Issues

  1. 1 Whether insured's non‑disclosure/misrepresentations about persistent laryngitis, medical consultations and treatments were material
  2. 2 Whether those misrepresentations or concealments induced the insurer to enter the contract
  3. 3 Whether a photographic copy of the application attached to the policy satisfies statutory requirement that contract terms be on face or back of the policy

Ratio Decidendi

Majority: The insured's persistent laryngitis, recurrent extinction of voice, consultations with physicians and treatment with nitrate of silver were material facts he was bound to disclose; their concealment amounted to material misrepresentation that actually induced the insurer to issue the policies; a photographic copy of the application affixed to the policy substantially complied with the statutory requirement that contract terms be set out on the instrument, so the policies were voidable and the insurer's refusal to pay was justified. Dissent: The respondent failed to prove materiality; the laryngitis was a banal condition not affecting risk and the trial judge's finding should be...

Court Disposition

Appeal dismissed; judgment of the Court of King's Bench dismissing the appellant's action affirmed by the Supreme Court of Canada (majority).

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of King's Bench maintaining dismissal of appellant's action against insurer affirmed