Cedar Hut Restaurant v. Wawanesa Mutual Insurance Co. et al., (1985) 41 Sask.R. 161 (QB)

• Judge: Grotsky, J.
• Court: Court of Queen's Bench of Saskatchewan (Canada)
• Case Date: July 29, 1985
• Jurisdiction: Saskatchewan
• Citations: (1985), 41 Sask.R. 161 (QB)

Cedar Hut Rest. v. Wawanesa Mutual (1985), 41 Sask.R. 161 (QB)

MLB headnote and full text

Cedar Hut Restaurant Ltd. (plaintiff) v. Wawanesa Mutual Insurance Company, General Accident Assurance Company of Canada, Elite Insurance Company, Federation Insurance Company of Canada, Insurance Corporation of Ireland Limited and Norman Insurance Company Limited (defendants)

(No. 1639 A.D. 1984)

Indexed As: Cedar Hut Restaurant v. Wawanesa Mutual Insurance Co. et al.

Saskatchewan Court of Queen's Bench

Judicial Centre of Regina

Grotsky, J.

July 29, 1985.

Summary:

Cedar Hut claimed under a fire insurance policy for its loss following a fire.

The Saskatchewan Court of Queen's Bench allowed Cedar Hut's action and awarded Cedar Hut $175,402.00 plus interest and costs.

Insurance - Topic 3105

Payment of insurance proceeds - Conditions precedent - Filing proof of loss - The Saskatchewan Court of Queen's Bench referred to the duties of an insured respecting the proof of loss (see paragraph 21).

Insurance - Topic 3137

Payment of insurance proceeds - Relief against forfeiture, when available - The Saskatchewan Court of Queen's Bench referred to the test to be employed in determining whether to grant relief from forfeiture (see paragraph 30).

Insurance - Topic 3110

Payment of insurance proceeds - Conditions precedent - Notice of claim - A fire loss occurred on July 18, 1983 - The insurer investigated the fire immediately but a completed proof of loss was not delivered to the insurer until January 27, 1984 - The Saskatchewan Court of Queen's Bench found that in the circumstances notice to the insurer was prompt and reasonable and complied with statutory condition 6 in s. 128 of the Saskatchewan Insurance Act (see paragraph 33).

Interest - Topic 5304

Interest as damages - Interest on payment of money withheld, amount due under a fire insurance contract - The Saskatchewan Court of Queen's Bench awarded an insured interest at 12% per annum on the amount awarded from 60 days after completion and delivery of the proof of loss (see paragraphs 52 to 61).

Practice - Topic 7110

Costs - Party and party costs - Increase in scale of costs - The Saskatchewan Court of Queen's Bench referred to the proper factors to be considered in determining whether to lift the limitation in Rule 549(10)(a) or to otherwise increase the costs (see paragraph 69).

Practice - Topic 7107

Costs - Party and party costs - Limiting rules - The Saskatchewan Court of Queen's Bench referred to circumstances which justified an order lifting the limitation on costs prescribed by Rule 549(10)(a) (see paragraphs 70 to 72).

Cases Noticed:

Nixon v. Queen Insurance Company (1893), 23 S.C.R. 26, refd to. [para. 21].

Banting v. Niagra District Mutual Fire Assurance Company (1886), 25 U.C.Q.B. 431, refd to. [para. 21].

Hiddle v. National Fire and Marine Insurance Company of New Zealand, [1896] A.D. 372, refd to. [para. 21].

Mulvey v. Gore District Mutual Fire Assurance Company (1866), 25 U.C. Q.B. 424, refd to. [para. 21].

Hanson v. Yorkshire Insurance Company Ltd. (1964), 49 W.W.R.(N.S.) 603 (Alta. S.C.), refd to. [para. 26].

Schwartz & Schwartz v. Providence Washington Insurance Company (196364), 45 W.W.R.(N.S.) 617 (Man. C.A.), refd to. [para. 26].

Junet Estate and Kallos v. Saskatchewan Government Insurance (1984), 30 Sask.R. 185, refd to. [para. 26].

Hogan v. Kolisnyk and Security Mutual Casualty Company, 43 A.R. 17; [1983] 3 W.W.R. 4481 (Alta. Q.B.), refd to. [para. 28].

W. Schoeler Trucking Ltd. v. Markel Insurance Company of Canada, [1980] I.L.R. 1-1210; 19 A.R. 196 (Alta. D.C.T.), refd to. [para. 28].

Minto Construction Ltd. v. Gerling Global General Insurance Company (1978), 19 O.R.(2d) 617, refd to. [para. 29].

Bodnarchuk and Nowakowsky v. Union Marine & General Insurance Company Limited (1957), 22 W.W.R.(N.S.) 389, revd. on other grounds, [1958] S.C.R. 399, refd to. [para. 30].

Moxness v. S.G.I.O., [1977] 3 W.W.R. 393, refd to. [para. 30].

Prentice v. Cooperators General Insurance Company (1984), 4 C.C.I.L. 337 (Ont. D.C.T.), refd to. [para. 31].

Provident Assurance Company v. Adamson, [1938] S.C.R. 482, refd to. [para. 31].

Brown v. Manitoba Public Insurance Corporation, [1978] 5 W.W.R. 458 (Man. Q.B.), refd to. [para. 31].

Lynch v. Royal Insurance Company of Canada (1984), 5 C.C.I.L. 20 (Ont. D.C.T.), refd to. [para. 31].

Kirilenko and Kirilenko v. Lavoie and Sinclair (1981), 10 Sask.R. 324, refd to. [para. 32].

Murray v. City of Saskatoon (1951-52), 4 W.W.R.(N.S.) 234, refd to. [para. 32].

Broadview Glass Inc. v. Bridge City Properties Ltd. and Royal Bank of Canada (1983), 25 Sask.R. 196, refd to. [para. 32].

Griswood v. Elite Insurance Co. et al. (1983), 22 Sask.R. 287, refd to. [para. 46].

Harrand v. Saskatchewan Government Insurance Office (1978), 88 D.L.R.(3d) 388; 7 Sask.R. 188; [1979] 4 W.W.R. 478 (Sask. C.A.), refd to. [para. 55].

Banfield Real Estate Ltd. v. Hoffer, [1976] W.W.D. 182; [1977] 4 W.W.R. 465 (Man. C.A.), refd to. [para. 55].

Buckley v. Vair (1917), 40 O.L.R. 465 (Ont. C.A.), refd to. [para. 55].

Verreault Navigation Inc. v. Co-Op Maritime, [1969] 2 Ex. C.R. 257, refd to. [para. 55].

Popular Industrial Ltd. v. Frank Stollery Ltd. (1973), 40 D.L.R.(3d) 356, refd to. [para. 55].

Bohl v. Great West Life Assurance Co., [1974] 1 W.W.R. 700, affd. (1974), 40 D.L.R.(3d) 584 (Sask. C.A.), refd to. [para. 56].

Lund v. Great West Life Assurance Company, [1976] 3 W.W.R. 245; (1976), 66 D.L.R.(3d) 143 (Sask. Q.B.), refd to [para. 56].

Collins & Collins v. Weninger, Sutherland, Behiel and Scott (1983), 28 Sask.R. 101, refd to. [para. 57].

Estevan Brick v. Gerling Global General Insurance Company (1985), 36 Sask.R. 90, refd to. [para. 57].

Lydney & Wigpool Iron Ore Co. v. Bird (1895), 31 Ch. D. 328; 55 L.J. Ch. 383, refd to. [para. 66].

Re Chaytor's Settled Estate Act (1884), 25 Ch. D. 651; 53 L.J. Ch. 312, refd to. [para. 66].

Hlynski v. Economical Mutual Insurance Co. (1958), 25 W.W.R.(N.S.) 624, refd to. [para. 66].

Leibel v. Rural Municipality of South Qu'Appelle, [1943] 2 W.W.R. 277, affd. [1943] 3 W.W.R. 566 (Sask. C.A.), refd to. [para. 68].

Statutes Noticed:

Saskatchewan Insurance Act, R.S.S. 1978, c. S-26, sect. 109 [para. 25]; sect. 113(1) [para. 58]; sect. 128, Statutory Condition 6 [para. 10]; Statutory Condition 12 [para. 53].

Authors and Works Noticed:

Brown & Menezes, Insurance Law in Canada, para. 11:2:2 [para. 13]; p. 141 [para. 43]; p. 219 [para. 21].

Halsbury's Laws of England (2nd Ed.), vol. 26, p. 101 [para. 66].

Counsel:

W. Olive and F.C. Zinkhan, for the plaintiff;

H.R. Kloppenburg and M.A. Kobrynsky, for the defendants.

This case was heard by Grotsky, J., of the Saskatchewan Court of Queen's Bench. The decision of Grotsky, J., was delivered on July 29, 1985.