Dechant v. McKechnie Agency Ltd. et al., (1999) 253 A.R. 14 (QBM)

• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: October 04, 1999
• Citations: (1999), 253 A.R. 14 (QBM)

Dechant v. McKechnie Agency Ltd. (1999), 253 A.R. 14 (QBM)

MLB headnote and full text

Temp. Cite: [1999] A.R. TBEd. OC.107

Richard F. Dechant (plaintiff) v. McKechnie Agency Ltd., Walter Cuell, Eldon J. Simpson, Donald C. Norheim and Norheim Simpson, Barristers and Solicitors (defendants) and Guardian Insurance Company of Canada (third party)

(Action No. 9203 22089; 1999.ca.ab.qb.734)

Indexed As: Dechant v. McKechnie Agency Ltd. et al.

Alberta Court of Queen's Bench

Judicial District of Edmonton

Funduk, Master in Chambers

October 4, 1999.

Summary:

Dechant sued his insurance agent for failing to advise him of the uninsured mo­torist endorsement. The agent third partied the insurer. The insurer applied for summary judgment dismissing the third party notice.

A Master of the Alberta Court of Queen's Bench dismissed the application. The insurer could not resort to rule 159 in the absence of "special circumstances" and could not resort to rule 129 to establish that the limitation period had expired.

Agency - Topic 3326

Relations between principal and agent - Agent's right to indemnity - Dechant sued his insurance agent for failing to advise him of the uninsured motorist endorsement - The agent third partied the insurer, claiming the insurer must indemnify the agent because the agent was the insurer's agent - The insurer applied for summary judgment dismissing the third party notice - A Master of the Alberta Court of Queen's Bench stated that a negligent agent is not entitled to indemnity from his principal - See paragraphs 1 to 12.

Insurance - Topic 545

Agents - Liability of insurer for acts of agent - Negligence - [See Agency - Topic 3326 ].

Cases Noticed:

Miller v. Guardian Insurance Co. of Canada et al. (1995), 175 A.R. 382; 33 Alta. L.R.(3d) 280 (Q.B.), affd. in part (1997), 200 A.R. 332; 146 W.A.C. 332; 53 Alta. L.R.(3d) 338 (C.A.), refd to. [para. 2].

Metz v. Breland et al. (1990), 110 A.R. 25; 76 Alta. L.R.(2d) 397 (C.A.), refd to. [para. 5].

Heaton's Transport (St. Helens) Ltd. v. Transport and General Workers' Union, [1992] 3 All E.R. 101 (H.L.), reving [1972] 2 All E.R. 1214 (C.A.), refd to. [para. 11].

Lister v. Romford Ice and Cold Storage Co., [1957] A.C. 555 (H.L.), refd to. [para. 12].

Vandyke v. Fender, [1969] 3 All E.R. 1291 (Q.B.), refd to. [para. 12].

Canada Deposit Insurance Corp. et al. v. Prisco et al. (1996), 181 A.R. 161; 116 W.A.C. 161 (C.A.), refd to. [para. 13].

Western Canadian Place Ltd. et al. v. Con-Force Products Ltd. et al. (1997), 208 A.R. 179 (Q.B.), refd to. [para. 13].

Cantafio et al. v. St. Hilaire et al. (1999), 249 A.R. 172 (Q.B.), refd to. [para. 13].

Boudreault v. Barrett et al. (1995), 174 A.R. 71; 102 W.A.C. 71; 33 Alta. L.R.(3d) 60 (C.A.), refd to. [para. 14].

Statutes Noticed:

Rules of Court (Alta.), rule 129 [para. 14]; rule 159 [para. 13].

Authors and Works Noticed:

Bowstead and Reynolds on Agency (16th Ed. 1996), pp. 330, 331 [para. 10].

Fridman, Gerald Henry Louis, The Law of Agency (6th Ed. 1990), pp. 279 ff. [para. 11]; 302 [para. 10].

Counsel:

K.W. Fedorak (Brownlee Fryett), for the third party;

A.L. Kirker (MacLeod Dixon), for the agent.

This application was heard before Funduk, Master in Chambers, of the Alberta Court of Queen's Bench, Judicial District of Edmon­ton, who delivered the following judgment on October 4, 1999.