Burch et al. v. Intact Insurance Co., (2014) 589 A.R. 303 (QB)

• Judge: Greckol, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: April 02, 2014
• Citations: (2014), 589 A.R. 303 (QB);2014 ABQB 306

Burch v. Intact Ins. (2014), 589 A.R. 303 (QB)

MLB headnote and full text

Temp. Cite: [2014] A.R. TBEd. MY.099

Terry Burch, Christopher Burch and Her Majesty the Queen in Right of Alberta (plaintiffs) v. Intact Insurance Company (formerly known as ING Western Union Insurance Company)

(defendant)

(1103 16361; 2014 ABQB 306)

Indexed As: Burch et al. v. Intact Insurance Co.

Alberta Court of Queen's Bench

Judicial District of Edmonton

Greckol, J.

May 20, 2014.

Summary:

The plaintiffs (judgment creditors) commenced a direct recourse action against a judgment debtor's insurer, seeking to recover the amount of an unsatisfied judgment under s. 534(1) of the Insurance Act.

The Alberta Court of Queen's Bench dismissed the plaintiffs' direct recourse action.

Insurance - Topic 3162

Payment of insurance proceeds - Actions - By judgment creditor against debtor's insurer - When available - The Alberta Court of Queen's Bench discussed what a judgment creditor had to prove to recover directly from a judgment debtor's insurer under s. 530 (now s. 534) of the Insurance Act - See paragraphs 26 to 29.

Insurance - Topic 3162

Payment of insurance proceeds - Actions - By judgment creditor against debtor's insurer - When available - [See Insurance - Topic 6624 ].

Insurance - Topic 6624

Multi-peril property insurance - Household or homeowner's policies - Farms - Miller, a farmer and horse breeder, sold Burch a horse, agreeing to provide Burch with 30 days of riding lessons - Burch was thrown from the horse and injured during a lesson - Miller died later that year - The plaintiffs (including Burch) obtained judgment in a negligence action against Miller's estate, but the judgment remained unsatisfied - The plaintiffs commenced a direct recourse against Miller's insurer, Intact (Insurance Act, s. 534(1)) - The Alberta Court of Queen's Bench dismissed the action - Intact successfully raised a defence against the plaintiffs that it would have had against Miller or the estate administrator - Intact established that the "business pursuits" exclusion in the policy applied (i.e., the policy excluded claims relating to Miller's non-farming business activities, such as riding lessons) - See paragraphs 35 to 48.

Insurance - Topic 6640.4

Multi-peril property insurance - Household or homeowner's policies - Exclusions - Business pursuits of insured or rendering of professional services - [See Insurance - Topic 6624 ].

Insurance - Topic 6822

Liability insurance - Homeowner's comprehensive policy - Exclusions - Liability arising from business - Business pursuits exclusion - [See Insurance - Topic 6624 ].

Cases Noticed:

Raywalt Construction Co. et al. v. Allstate Insurance Co. of Canada et al. (2010), 493 A.R. 287; 2010 ABCA 320, refd to. [para. 26].

Coronation Insurance Co. et al. v. Taku Air Transport Ltd. et al., [1991] 3 S.C.R. 622; 131 N.R. 241; 6 B.C.A.C. 161; 13 W.A.C. 161, refd to. [para. 31].

Stuart (W.H.) Mutuals Ltd. v. London Guarantee Insurance Co. (2004), 193 O.A.C. 201; 16 C.C.L.I.(4th) 192 (C.A.), leave to appeal refused [2005] 1 S.C.R. xvii; 343 N.R. 196; 207 O.A.C. 399, refd to. [para. 31].

Johnson v. AXA Pacific Insurance Co., [2011] B.C.T.C. Uned. 305; 2011 BCSC 305, refd to. [para. 31].

Agresso Corp. v. Temple Insurance Co. et al., [2007] B.C.A.C. Uned. 162; 2007 BCCA 559, refd to. [para. 31].

Schoff v. Royal Insurance Co. of Canada et al. (2004), 348 A.R. 366; 321 W.A.C. 366; 2004 ABCA 180, refd to. [para. 32].

Sagl v. Cosburn, Griffiths & Brandham Insurance Brokers Ltd. et al. (2009), 249 O.A.C. 234; 2009 ONCA 388, refd to. [para. 32].

Progressive Homes Ltd. v. Lombard General Insurance Co. of Canada, [2010] 2 S.C.R. 245; 406 N.R. 182; 293 B.C.A.C. 1; 496 W.A.C. 1; 2010 SCC 33, refd to. [para. 36].

Tam et al. v. Lee et al. (1998), 80 O.T.C. 221; 167 D.L.R.(4th) 353 (Gen. Div.), refd to. [para. 26].

Wilkinson v. Security National Insurance Co. (1999), 249 A.R. 282 (Q.B.), refd to. [para. 26].

Dmytrenko v Vandenbor (2007), 88 OR (3d) 128 (Sup. Ct.), refd to. [para. 37].

Kaler v. Red River Valley Mutual Insurance Co. (1995), 102 Man.R.(2d) 136; 93 W.A.C. 136; 126 D.L.R.(4th) 700 (C.A.), refd to. [para. 37].

Rocovitis Estate et al. v. Dominion of Canada General Insurance Co. et al., [2003] O.T.C. 81; 63 O.R.(3d) 402 (Sup. Ct.), refd to. [para. 37].

Y.J. v. M.F., [1993] O.J. No. 4472 (Gen. Div.), refd to. [para. 37].

Statutes Noticed:

Insurance Act, R.S.A. 2000, c. I-3, sect. 534(1) [para. 10].

Counsel:

J. Mageau (Witten LLP), for the plaintiffs;

A. Sinclair and H.E. Ebbern (Intact Insurance), for the defendant.

This matter was heard on April 2, 2014, before Greckol, J., of the Alberta Court of Queen's Bench, Judicial District of Edmonton, who delivered the following decision on May 20, 2014.