Fleet v. Federated Life Insurance Company of Canada

Fleet v. Federated Life Insurance Company of Canada

The court found the evidence did not establish that the deceased insured made a material misrepresentation to Federated Life; expert handwriting and admissions established the agent forged the insured's signature and did not reasonably ask or record the required medical information; Federated Life therefore failed to discharge the onus of proving misrepresentation and must pay the $150,000 benefit to the beneficiary; Federated Life in turn is entitled to judgment against its agent Bellefontaine for the same amount for breach of duty in submitting the application.

Citation
2008 NSSC 231
Parties
Plaintiff/beneficiary: David Richard K. Fleet; Defendant/insurer: Federated Life Insurance Company of Canada; Defendant/agent/cross Defendant: Paul Bellefontaine
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
25 July 2008
Procedural Posture
Civil Insurance Dispute (life Insurance, Agency and Misrepresentation) / Trial Judgment (supreme Court of Nova Scotia)
Outcome
Judgment for plaintiff Fleet against Federated Life for $150,000; judgment for Federated Life against agent Bellefontaine for $150,000; claim by Fleet against Bellefontaine dismissed; prejudgment interest and costs reserved for further written submissions.
Legal Topics
Misrepresentation, Material Non Disclosure, Forgery/signature, Agent Fiduciary Duty, Use of Discovery Transcript, Prejudgment Interest, Credibility Assessment
Source Language
English
Insurance Law Contract Law Agency Law Evidence Law Misrepresentation Material Non Disclosure Forgery/signature Agent Fiduciary Duty +3 more

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Parties

David Richard K. Fleet

Plaintiff/beneficiary

Federated Life Insurance Company of Canada

Defendant/insurer

Paul Bellefontaine

Defendant/agent/cross Defendant

Procedural Posture

Civil Insurance Dispute (life Insurance, Agency and Misrepresentation) / Trial Judgment (supreme Court of Nova Scotia)

Legal Issues

  1. 1 Whether the deceased insured made material misrepresentations or failed to disclose material facts to the insurer
  2. 2 Whether the insurer proved misrepresentation or non-disclosure sufficient to avoid the policy
  3. 3 Whether the agent, Bellefontaine, signed the insureds' applications without authorization

Ratio Decidendi

The court found the evidence did not establish that the deceased insured made a material misrepresentation to Federated Life; expert handwriting and admissions established the agent forged the insured's signature and did not reasonably ask or record the required medical information; Federated Life therefore failed to discharge the onus of proving misrepresentation and must pay the $150,000 benefit to the beneficiary; Federated Life in turn is entitled to judgment against its agent Bellefontaine for the same amount for breach of duty in submitting the application.

Court Disposition

Judgment for plaintiff Fleet against Federated Life for $150,000; judgment for Federated Life against agent Bellefontaine for $150,000; claim by Fleet against Bellefontaine dismissed; prejudgment interest and costs reserved for further written submissions.

Orders

  • Judgment for $150,000 plus prejudgment interest to be paid by Federated Life to David Fleet (beneficiary).
  • Judgment for $150,000 plus prejudgment interest to be paid by Paul Bellefontaine to Federated Life (insurer).