The Toronto General Trusts Corporation v. Gooderham

The Toronto General Trusts Corporation v. Gooderham

The statutory trust created by the designation of the wife as a preferred beneficiary under R.S.O. 1914 s.178 on the date the 1920 continuous sickness policy was issued survived subsequent legislative amendments because those amendments did not contain the clear and precise language necessary to destroy vested rights in a continuous policy; accordingly the wife is entitled to the proceeds and may enforce payment directly from the insurer without intervention of the committee.

Citation
[1936] SCR 149
Parties
Appellant / Committee of the Estate of Henry F. Gooderham: Toronto General Trusts Corporation; Respondent / Designated Beneficiary (wife): Mildred Gooderham; Insured (person Declared Incapable): Henry F. Gooderham
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 April 1936
Procedural Posture
Insurance (sickness/disability) Appeal to Supreme Court of Canada / On Appeal From the Court of Appeal for Ontario; Cross Appeal by Respondent
Outcome
Appeal dismissed; cross-appeal allowed
Legal Topics
Preferred Beneficiary Statutory Trust, Sickness/disability Policy, Continuous Vs Renewal Policy, Retrospectivity of Legislative Amendments, Entitlement to Direct Payment by Insurer
Source Language
English
Insurance Law Trusts Property Law Statutory Interpretation Family Law Preferred Beneficiary Statutory Trust Sickness/disability Policy Continuous Vs Renewal Policy +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 13 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Toronto General Trusts Corporation

Appellant / Committee of the Estate of Henry F. Gooderham

Mildred Gooderham

Respondent / Designated Beneficiary (wife)

Henry F. Gooderham

Insured (person Declared Incapable)

Procedural Posture

Insurance (sickness/disability) Appeal to Supreme Court of Canada / On Appeal From the Court of Appeal for Ontario; Cross Appeal by Respondent

Legal Issues

  1. 1 Whether designation of wife as preferred beneficiary under R.S.O. 1914 s.178 created a statutory trust preventing proceeds from forming part of insured's estate or being subject to creditors
  2. 2 Whether subsequent statutory amendments (1922 c.61; 1924 c.50; R.S.O. 1927 c.222; 1928 c.35; 1931 c.49) extinguished or altered that trust, including change to Statutory Condition 19 in 1928
  3. 3 Whether the 1920 policy was a continuous policy or an annual renewal policy for purposes of applying later statutory changes

Ratio Decidendi

The statutory trust created by the designation of the wife as a preferred beneficiary under R.S.O. 1914 s.178 on the date the 1920 continuous sickness policy was issued survived subsequent legislative amendments because those amendments did not contain the clear and precise language necessary to destroy vested rights in a continuous policy; accordingly the wife is entitled to the proceeds and may enforce payment directly from the insurer without intervention of the committee.

Court Disposition

Appeal dismissed; cross-appeal allowed

Orders

  • Appeal dismissed; cross-appeal allowed
  • Declare that the moneys paid and to be paid under the policy are impressed with a trust in favour of Mildred Gooderham and that she is entitled to those proceeds