World Marine and General Ins. Co. Ltd. v. Leger

World Marine and General Ins. Co. Ltd. v. Leger

Because the sub-agent had no company indicia of authority (no interim receipts or official forms), the application marked "subject to approval" and the evidence showed the sub-agent indicated the risk would have to be brokered, the payment and oral assurance did not bind the insurer; payment to such a sub-agent was only a proposal which the company could accept or reject, so the insurer was not liable.

Citation
[1952] 2 SCR 3
Parties
Appellant / Defendant: World Marine & General Insurance Company Limited; Respondent / Plaintiff: Yvon Leger; Co Defendant / General Agent (named): J. Arthur Anderson & Co.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 December 1951
Procedural Posture
Civil Appeal (insurance) / Appeal to the Supreme Court of Canada From the Supreme Court of New Brunswick, Appeal Division
Outcome
Appeal allowed; judgment of the Supreme Court of New Brunswick, Appeal Division set aside; judgment of trial court restored and action against the insurer dismissed.
Legal Topics
Sub Agent Authority, Acceptance of Proposal, Receipt of Premium, Ostensible/apparent Authority, Estoppel, Burden of Proof and Credibility
Source Language
English
Insurance Agency Law Contract Law Evidence Sub Agent Authority Acceptance of Proposal Receipt of Premium Ostensible/apparent Authority +2 more

Case Brief

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Parties

World Marine & General Insurance Company Limited

Appellant / Defendant

Yvon Leger

Respondent / Plaintiff

J. Arthur Anderson & Co.

Co Defendant / General Agent (named)

Procedural Posture

Civil Appeal (insurance) / Appeal to the Supreme Court of Canada From the Supreme Court of New Brunswick, Appeal Division

Legal Issues

  1. 1 Whether the sub-agent (Robidoux) had actual or ostensible authority to bind the insurer
  2. 2 Whether payment of the premium to the sub-agent together with the application constituted acceptance by the insurer
  3. 3 Whether statements by the sub-agent that the plaintiff was insured bound the insurer

Ratio Decidendi

Because the sub-agent had no company indicia of authority (no interim receipts or official forms), the application marked "subject to approval" and the evidence showed the sub-agent indicated the risk would have to be brokered, the payment and oral assurance did not bind the insurer; payment to such a sub-agent was only a proposal which the company could accept or reject, so the insurer was not liable.

Court Disposition

Appeal allowed; judgment of the Supreme Court of New Brunswick, Appeal Division set aside; judgment of trial court restored and action against the insurer dismissed.

Orders

  • Appeal allowed with costs
  • Judgment of the Appeal Division set aside