Clark, Drummie & Co. v. Law Society of New Brunswick, (1993) 138 N.B.R.(2d) 332 (TD)
Judge | Jones, J. |
Court | Court of Queen's Bench of New Brunswick (Canada) |
Case Date | July 14, 1993 |
Jurisdiction | New Brunswick |
Citations | (1993), 138 N.B.R.(2d) 332 (TD) |
Clark, Drummie v. N.B. Law Soc. (1993), 138 N.B.R.(2d) 332 (TD);
138 R.N.-B.(2e) 332; 354 A.P.R. 332
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Clark, Drummie & Company (applicant) v. The Law Society of New Brunswick (respondent)
(S/M/125/93)
Indexed As: Clark, Drummie & Co. v. Law Society of New Brunswick
New Brunswick Court of Queen's Bench
Trial Division
Judicial District of Saint John
Jones, J.
September 14, 1993.
Summary:
A law firm carried professional liability insurance through the New Brunswick Law Society and presented a claim for coverage for an incident involving a conversion of funds by an associate, for which the firm members were held liable. The Law Society denied coverage, contending that the claim was not covered by the policy. The matter was submitted to an arbitrator. The arbitrator found that the policy did not cover the law firm. The law firm applied for judicial review of the arbitrator's decision.
The New Brunswick Court of Queen's Bench, Trial Division, dismissed the application.
Insurance - Topic 1861
The insurance contract - Interpretation of contract - Contra proferentem rule - The New Brunswick Court of Queen's Bench, Trial Division, held that the principle of contra proferentem rests upon the existence of an ambiguity and was not applicable in a case involving the interpretation of an insurance policy, where there was no ambiguity in the wording of the policy - See paragraph 22.
Insurance - Topic 7664
Professional liability insurance - Defences and exclusions - Exclusions - General - A law firm claimed under its professional liability insurance for an incident involving a conversion of funds by an associate, for which the firm members were held liable -The insurer denied coverage, relying on an exclusion that the policy did not apply to theft or misappropriation of client trust funds - An arbitrator found that the policy did not cover the firm - The firm applied for judicial review - The New Brunswick Court of Queen's Bench, Trial Division, held that the arbitrator's interpretation of the policy was correct.
Insurance - Topic 7664
Professional liability insurance - Defences and exclusions - Exclusions - General - A law firm claimed under its professional liability insurance after a conversion of funds by an associate - The insurer denied coverage, relying on an exclusion that the policy did not apply to theft or misappropriation of client trust funds - An arbitrator found that the policy did not cover the firm - The firm argued that the exclusion could not apply because the loss was caused in part by the negligence of another party - The New Brunswick Court of Queen's Bench, Trial Division, agreed with the arbitrator that the associate's conversion of funds was the proximate cause of the loss and that where there was more than one cause, and one fell within the exclusion, the loss would be excluded.
Cases Noticed:
Clark's Chick Hatchery Ltd. v. Commonwealth Insurance Co. (1982), 40 N.B.R.(2d) 87; 105 A.P.R. 87 (C.A.), refd to. [para. 25].
Counsel:
G. Fred Nicholson, Q.C., for the applicant;
David N. Norman, Q.C., for the respondent.
This application was heard on July 14, 1993, before Jones, J., of the New Brunswick Court of Queen's Bench, Trial Division, Judicial District of Saint John, who delivered the following decision on September 14, 1993.
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...Nfld. & P.E.I.R. 240; 185 A.P.R. 240 (Nfld. T.D.), dist. [para. 20]. Clark, Drummie & Co. v. Law Society of New Brunswick (1993), 138 N.B.R.(2d) 332; 354 A.P.R. 332 (T.D.), dist. [para. Clark's Chick Hatchery Ltd. v. Commonwealth Insurance Co., [1982] I.L.R. 704; 38 N.B.R.(2d) 189; ......
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...Bench, Trial Division, dismissed the client's action. Cases Noticed: Clark Drummie & Co. v. Law Society of New Brunswick (1993), 138 N.B.R.(2d) 332; 354 A.P.R. 332 (T.D.), refd to. [para. Authors and Works Noticed: Brown and Menezes, Insurance Law in Canada (1st Ed. 1982), p. 194 [para.......
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Brown v. Atlantic Insurance Co., (1996) 142 Nfld. & P.E.I.R. 259 (NFTD)
...Nfld. & P.E.I.R. 240; 185 A.P.R. 240 (Nfld. T.D.), dist. [para. 20]. Clark, Drummie & Co. v. Law Society of New Brunswick (1993), 138 N.B.R.(2d) 332; 354 A.P.R. 332 (T.D.), dist. [para. Clark's Chick Hatchery Ltd. v. Commonwealth Insurance Co., [1982] I.L.R. 704; 38 N.B.R.(2d) 189; ......
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...Bench, Trial Division, dismissed the client's action. Cases Noticed: Clark Drummie & Co. v. Law Society of New Brunswick (1993), 138 N.B.R.(2d) 332; 354 A.P.R. 332 (T.D.), refd to. [para. Authors and Works Noticed: Brown and Menezes, Insurance Law in Canada (1st Ed. 1982), p. 194 [para.......