Adams-Eden Furniture Ltd. v. Kansa General Insurance Inc. et al., (1996) 113 Man.R.(2d) 142 (CA)

• Judge: Twaddle, Lyon and Helper, JJ.A.
• Court: Court of Appeal (Manitoba)
• Case Date: November 21, 1996
• Jurisdiction: Manitoba
• Citations: (1996), 113 Man.R.(2d) 142 (CA)

Adams-Eden Furniture v. Kansa (1996), 113 Man.R.(2d) 142 (CA);

    131 W.A.C. 142

MLB headnote and full text

Adams-Eden Furniture Ltd., operating as Whitehorse Furniture Ltd. (plaintiff) v. Kansa General International Insurance Company Ltd. (defendant/appellant) and Johnson & Higgins Ltd./Johnson & Higgins Ltée (defendant/respondent)

(Suit No. AI 95-30-02392)

Indexed As: Adams-Eden Furniture Ltd. v. Kansa General Insurance Inc. et al.

Manitoba Court of Appeal

Twaddle, Lyon and Helper, JJ.A.

November 21, 1996.

Summary:

The plaintiff sued for payment for a fire loss. The insurer, Kansa General Insurance (Kansa), cross-claimed against Johnson & Higgins Ltd. (J & H), the plaintiff's insur­ance broker. Kansa claimed that J & H failed in its duty to disclose all material facts to Kansa to permit it to make an assessment of the physical and moral risk of the poten­tial insured. Kansa settled and paid the plaintiff for the loss, but without prejudice to its right to proceed on its cross-claim against J & H.

The Manitoba Court of Queen's Bench, in a decision reported 103 Man.R.(2d) 284, dismissed the cross-claim. Kansa appealed.

The Manitoba Court of Appeal dismissed the appeal.

Insurance - Topic 621

Brokers - Relations with insurers - Duties of broker - The plaintiff sued for payment for a fire loss - The insurer, Kansa, cross-claimed against J & H, the plaintiff's in­surance broker - Kansa claimed that J & H failed in its duty to disclose all material facts to Kansa to permit it to make an assessment of the physical and moral risk of the potential insured - The trial judge dismissed the cross-claim, holding that J & H fulfilled its legal duty to the insurer with regard to obtaining and disclosing the material facts - Kansa appealed - The Manitoba Court of Appeal dismissed the appeal, holding that J & H did not owe Kansa a duty of care.

Cases Noticed:

Carter v. Boehm (1766), 3 Burr. 1905; 97 E.R. 1162 (K.B.), refd to. [para. 13].

Canadian Indemnity Co. v. Canadian Johns-Manville Co., [1990] 2 S.C.R. 549; 115 N.R. 161; 33 Q.A.C. 161, refd to. [para. 13].

Empress Assurance Corp. v. Bowring (C.T.) & Co. (1905), 11 Com. Cas. 107, refd to. [paras. 22, 48].

Glasgow Assurance Corp. v. Symondson (William) & Co. (1911), 104 L.T. 254 (K.B.), refd to. [para. 23].

Anglo-African Merchants Ltd. et al. v. Bayley et al., [1970] 1 Q.B. 311, refd to. [para. 26].

Rozanes v. Bowen (1928), 32 Ll. L.R. 98 (C.A.), refd to. [para. 27].

North Waterloo Farmers Mutual Insurance Co. v. Wylie (1989), 40 C.C.L.I. 227 (Ont. H.C.), dist. [paras. 32, 44].

Ogden & Co. v. Reliance, [1975] 1 Lloyd's Rep. 52 (Aust. S.C.), refd to. [para. 36].

Stockton v. Mason and Vehicle and Gen­eral Insurance Co. et al., [1978] 2 Lloyd's Rep. 430 (C.A.), refd to. [para. 38].

Woolcott v. Excess Insurance Co., [1978] 1 Lloyd's Rep. 633 (C.A.), refd to. [para. 38].

Crawford Ditching & Dozing Ltd. v. Canadian Surety Co. and Reierson Insur­ance Services Ltd. (1985), 67 A.R. 241; 15 C.C.L.I. 1 (Q.B.), not folld. [paras. 45, 46].

MacLean v. Canadian General Insurance Co. and Assurance Vienneau Ltée (1990), 103 N.B.R.(2d) 402; 259 A.P.R. 402; 42 C.C.L.I. 113 (Q.B.), not folld. [paras. 45, 47].

Yorkshire Trust Co. v. Laurentian Pacific Insurance Co. (1987), 28 C.C.L.I. 368 (B.C.S.C.), not folld. [paras. 45, 48].

Sulzinger v. Alexander (C.K.) Ltd., [1972] 1 O.R. 720 (C.A.), refd to. [para. 49].

Dorsch et al. v. Weyburn (City) et al. (1985), 43 Sask.R. 46; 23 D.L.R.(4th) 379 (C.A.), refd to. [paras. 49, 51].

Gran Gelato Ltd. v. Richcliff (Group) Ltd. et al., [1992] 2 W.L.R. 867 (Ch. D.), appld. [paras. 49, 53].

White et al. v. Jones et al., [1995] 1 All E.R. 691; 179 N.R. 197 (H.L.), refd to. [para. 49].

Hedley Byrne & Co. v. Heller & Partners Ltd., [1964] A.C. 465 (H.L.), refd to. [para. 50].

Authors and Works Noticed:

Couch on Insurance (2nd Rev. Ed. 1984), para. 25:93 [para. 19].

Fridman, G.H.L., The Law of Agency (6th Ed. 1990), pp. 205 to 206 [para. 35].

Halsbury's Laws of England (1990)(4th Ed. - Reissue), vol. 1(2), para. 147 [para. 34]; vol. 25, para. 381 [para. 25].

Counsel:

B.J. Meronek, Q.C., and A.F. Foran, for the appellant;

R.E. Stephenson, Q.C., for the respondent.

This appeal was heard on September 19, 1996, by Twaddle, Lyon and Helper, JJ.A., of the Manitoba Court of Appeal.

The following decision of the Court of Appeal was delivered on November 21, 1996, by Helper, J.A.