Guardian Assurance Co. v. Town of Chicoutimi

Guardian Assurance Co. v. Town of Chicoutimi

Because the municipality lawfully caused the demolition under statutory authority and paid full indemnity to the owner and received assignment of her insurance claim, the municipality was subrogated to the insured’s rights and could sue the insurer to recover the insurance proceeds; conversely, an insurer cannot recover from a municipality acting without fault under article 2584 C.C.

Citation
(1915) 51 SCR 562
Parties
Appellant / Defendant: Guardian Assurance Company; Respondent / Plaintiff: Town of Chicoutimi
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
24 June 1915
Procedural Posture
Appeal — Insurance Collection / Hearing and Judgment on Appeal to the Supreme Court of Canada From Court of King’s Bench, Province of Quebec
Outcome
Appeal dismissed; judgment of Court of King’s Bench affirmed
Legal Topics
Subrogation, Indemnity, Demolition Powers, General Conflagration, Municipal Liability, Assignability of Insurance Claims
Source Language
English
Insurance Law Municipal Law Tort Statutory Interpretation Civil Code Interpretation Subrogation Indemnity Demolition Powers +3 more

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Parties

Guardian Assurance Company

Appellant / Defendant

Town of Chicoutimi

Respondent / Plaintiff

Procedural Posture

Appeal — Insurance Collection / Hearing and Judgment on Appeal to the Supreme Court of Canada From Court of King’s Bench, Province of Quebec

Legal Issues

  1. 1 Whether a municipality that pays statutory indemnity and obtains an assignment can sue the insurer for policy proceeds
  2. 2 Whether demolition ordered under R.S.Q. art. 4426 imposes liability subject to deduction for insurance proceeds
  3. 3 Whether an insurer may be subrogated against a municipality that acted pursuant to statutory authority and without fault

Ratio Decidendi

Because the municipality lawfully caused the demolition under statutory authority and paid full indemnity to the owner and received assignment of her insurance claim, the municipality was subrogated to the insured’s rights and could sue the insurer to recover the insurance proceeds; conversely, an insurer cannot recover from a municipality acting without fault under article 2584 C.C.

Court Disposition

Appeal dismissed; judgment of Court of King’s Bench affirmed

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of King’s Bench, appeal side, affirmed