Dudelzak and Landry v. Madill, (1985) 60 A.R. 391 (QB)

• Judge: O'Leary, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: April 29, 1985
• Citations: (1985), 60 A.R. 391 (QB)

Dudelzak v. Madill (1985), 60 A.R. 391 (QB)

MLB headnote and full text

Dudelzak and Landry v. Madill in his quality as attorney in Canada for the Non-Marine Underwriters, Members of Lloyd's, London, England, and Renfrew Insurance Brokers Ltd.

(No. 8501-00063)

Indexed As: Dudelzak and Landry v. Madill

Alberta Court of Queen's Bench

Judicial District of Calgary

O'Leary, J.

April 29, 1985.

Summary:

The plaintiff lawyers had an insurance policy on office equipment, including records. In a burglary the lawyers lost 87 original executed wills belonging to clients and kept by the lawyers in accordance with a common legal profession practice. The lawyers had to prepare replacement wills and have them executed. They claimed recovery under the insurance policy. The insurer denied that the lawyers had an insurable interest in the wills and denied that the policy covered the loss.

The Alberta Court of Queen's Bench allowed the lawyers' claim. The court held that the lawyers' possession of the wills constituted an insurable interest and that the wills were records within the meaning of the policy. The court held that recovery under the policy was limited to the cost of materials plus labour (but not professional fees) in preparing replacements plus a single loss occurrence amount of $500.

Insurance - Topic 2285

Insurable interest - What constitutes - Personal property - Possession - The Alberta Court of Queen's Bench held that lawyers had an insurable interest in clients' executed wills kept by the lawyers in accordance with a common legal profession practice - See paragraphs 3 to 8.

Insurance - Topic 6517

Multi-peril property insurance - General - Exclusions - Property not owned by insured unless insured's interest disclosed - A law firm kept clients' executed wills in accordance with a common legal profession practice - The firms' interest in the wills was not stated in its insurance policy on office equipment, which required the insured's interest in property not owned by the insured to be disclosed - The Alberta Court of Queen's Bench held that the firm had an insurable interest in the wills and its interest in them did not need to be disclosed - See paragraph 25.

Insurance - Topic 6569

Multi-peril property insurance - Business policy - Office equipment - What constitutes - Executed wills kept by lawyers - A law firm kept clients' executed wills in accordance with common legal profession practice - The firm had insurance on office equipment, including records - A large number of wills were stolen and replacements had to be prepared and executed - The Alberta Court of Queen's Bench held that the wills constituted records of the law firm in which the law firm had an insurable interest, so that the cost of replacing them was recoverable under the policy - See paragraphs 3 to 13.

Cases Noticed:

West End Investment Co. v. Commerce and Industry Insurance Co. et al. (1976), 11 N.R. 541 (S.C.C.), appld. [para. 25].

Wabco Insulating Ltd. v. St. Paul Fire and Marine Insurance Co., [1983] I.L.R. 1-1692; 48 N.B.R.(2d) 339; 126 A.P.R. 339 (N.B.C.A.), appld. [para. 25].

Authors and Works Noticed:

MacGillivray and Parkington on Insurance Law (6th Ed.), para. 114 [para. 7].

Shorter Oxford English Dictionary [para. 21].

Counsel:

A.J. Landry, for the applicants;

A.J. Sattin, for the respondents.

This case was heard at Calgary, Alberta, before O'Leary, J., of the Alberta Court of Queen's Bench, Judicial District of Calgary, who delivered the following judgment on April 29, 1985: