British Empire Underwriters v. Wampler

British Empire Underwriters v. Wampler

Majority held that condition (B) limits the insurer’s liability to losses caused by the listed events (stranding, sinking, collision, burning, derailment) while in transit; damage falling into the water between ferry and wharf was not caused by any of those events and thus not covered; the adjuster lacked authority to bind the company, so insurer not estopped.

Citation
(1921) 62 SCR 591
Parties
Appellant (defendant): British Empire Underwriters Agency of the British America Assurance Company; Respondent (plaintiff): Paul Wampler
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
9 December 1921
Procedural Posture
Civil Appeal (insurance) / Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Ontario
Outcome
Appeal allowed with costs; judgment of trial judge restored.
Legal Topics
Policy Construction, Coverage During Transit, Special Risk Exclusions, Adjuster Authority, Estoppel
Source Language
English
Insurance Law Contract Law Marine/transport Law Policy Construction Coverage During Transit Special Risk Exclusions Adjuster Authority Estoppel

Case Brief

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Parties

British Empire Underwriters Agency of the British America Assurance Company

Appellant (defendant)

Paul Wampler

Respondent (plaintiff)

Procedural Posture

Civil Appeal (insurance) / Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Ontario

Legal Issues

  1. 1 Whether condition (B) of the automobile insurance policy limited coverage to losses caused by the enumerated events (stranding, sinking, collision, burning, derailment) or provided broader transit coverage; Whether the insurer was bound by the adjuster’s acts in directing repairs and ascertaining salvage

Ratio Decidendi

Majority held that condition (B) limits the insurer’s liability to losses caused by the listed events (stranding, sinking, collision, burning, derailment) while in transit; damage falling into the water between ferry and wharf was not caused by any of those events and thus not covered; the adjuster lacked authority to bind the company, so insurer not estopped.

Court Disposition

Appeal allowed with costs; judgment of trial judge restored.

Orders

  • Appeal allowed with costs.
  • Judgment of the trial judge restored (plaintiff’s recovery reversed).