Murray Bay Motor Co. Ltd. v. Bélair Insurance Co.

Murray Bay Motor Co. Ltd. v. Bélair Insurance Co.

The policy language excluding liability for injury to the wife or child of "any person insured by this policy" encompasses persons made insured by the omnibus clause (drivers with the owner's consent); the rider did not unambiguously limit its effect to exclusion (d) only, so exclusion (b) bars the insurer’s liability to indemnify the owner for the driver’s wife’s injuries.

Citation
[1975] 1 SCR 68
Parties
Appellant (plaintiff in Warranty): Murray Bay Motor Co. Ltd.; Respondent (defendant Insurer): Bélair Insurance Company; Mise En Cause (plaintiff): Fernande Leduc Ferland
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 December 1973
Procedural Posture
Civil Appeal — Insurance Indemnity / Warranty Claim / Appeal to the Supreme Court of Canada From Court of Queen’s Bench, Appeal Side, Province of Quebec
Outcome
Appeal dismissed; judgment of Court of Queen’s Bench, Appeal Side, Quebec and Superior Court affirmed by majority; Pigeon J. dissenting.
Legal Topics
Omnibus Clause, Exclusion Clause, Policy Rider Interpretation, Expressio Unius Exclusio Alterius, Insurer Indemnity, Highway Victims Indemnity Act
Source Language
English
Insurance Contract Law Tort Civil Procedure Omnibus Clause Exclusion Clause Policy Rider Interpretation Expressio Unius Exclusio Alterius +2 more

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Parties

Murray Bay Motor Co. Ltd.

Appellant (plaintiff in Warranty)

Bélair Insurance Company

Respondent (defendant Insurer)

Fernande Leduc Ferland

Mise En Cause (plaintiff)

Procedural Posture

Civil Appeal — Insurance Indemnity / Warranty Claim / Appeal to the Supreme Court of Canada From Court of Queen’s Bench, Appeal Side, Province of Quebec

Legal Issues

  1. 1 Whether insurer must indemnify vehicle owner for injury to passenger who is the driver’s wife
  2. 2 Whether omnibus clause extends the term "person insured" to drivers with owner’s consent and thus brings them within exclusion (b)
  3. 3 Whether the rider purporting to make insurer liable to any passenger limits exclusions only to paragraph (d) or overrides exclusion (b)

Ratio Decidendi

The policy language excluding liability for injury to the wife or child of "any person insured by this policy" encompasses persons made insured by the omnibus clause (drivers with the owner's consent); the rider did not unambiguously limit its effect to exclusion (d) only, so exclusion (b) bars the insurer’s liability to indemnify the owner for the driver’s wife’s injuries.

Court Disposition

Appeal dismissed; judgment of Court of Queen’s Bench, Appeal Side, Quebec and Superior Court affirmed by majority; Pigeon J. dissenting.

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of Queen’s Bench, Appeal Side, Province of Quebec affirmed