Pilot Insurance Company v. Sutherland

Pilot Insurance Company v. Sutherland

Section 22 of the OPCF 44R endorsement incorporates the Policy terms except as otherwise provided; because the endorsement does not displace the Policy's express territorial limitation, the Policy's territorial limit applies and precludes coverage for the accident in Jamaica; the Insurance Act is silent as to underinsured coverage and does not prohibit such territorial limits, so no statutory conflict or ambiguity exists.

Citation
2007 ONCA 492
Parties
Defendant (appellant): Pilot Insurance Company; Plaintiff (respondent): Everett Sutherland; Plaintiff (respondent): Anges Sutherland; Plaintiff (respondent): Sonya Sutherland (by her litigation guardian Anges Sutherland)
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
3 July 2007
Procedural Posture
Civil Appeal / Court of Appeal Decision on Appeal From Superior Court Motion Judge
Outcome
Appeal allowed; order below set aside; declaration that OPCF 44R Endorsement does not provide coverage for the Jamaica accident and insurer not required to indemnify
Legal Topics
Underinsured Motorist Coverage, Territorial Limitation, Endorsement Incorporation, Insurance Act Territorial Scope
Source Language
English
Insurance Law Contract Law Statutory Interpretation Underinsured Motorist Coverage Territorial Limitation Endorsement Incorporation Insurance Act Territorial Scope

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Parties

Pilot Insurance Company

Defendant (appellant)

Everett Sutherland

Plaintiff (respondent)

Anges Sutherland

Plaintiff (respondent)

Sonya Sutherland (by her litigation guardian Anges Sutherland)

Plaintiff (respondent)

Procedural Posture

Civil Appeal / Court of Appeal Decision on Appeal From Superior Court Motion Judge

Legal Issues

  1. 1 Whether the territorial limitation in the Ontario Automobile Policy applies to the OPCF 44R underinsured motorist endorsement
  2. 2 Whether the Insurance Act imposes or implies a territorial restriction on underinsured motorist coverage or creates an ambiguity

Ratio Decidendi

Section 22 of the OPCF 44R endorsement incorporates the Policy terms except as otherwise provided; because the endorsement does not displace the Policy's express territorial limitation, the Policy's territorial limit applies and precludes coverage for the accident in Jamaica; the Insurance Act is silent as to underinsured coverage and does not prohibit such territorial limits, so no statutory conflict or ambiguity exists.

Court Disposition

Appeal allowed; order below set aside; declaration that OPCF 44R Endorsement does not provide coverage for the Jamaica accident and insurer not required to indemnify

Orders

  • Appeal allowed and order below set aside
  • Declare that the OPCF 44R Endorsement does not provide coverage for the accident in Jamaica on December 31, 2001, subject to its terms and conditions