Estevan Brick v. Gerling Global General Insurance Co., (1984) 36 Sask.R. 91 (QB)

• Judge: Halvorson, J.
• Court: Court of Queen's Bench of Saskatchewan (Canada)
• Case Date: September 20, 1984
• Jurisdiction: Saskatchewan
• Citations: (1984), 36 Sask.R. 91 (QB)

Estevan Brick v. Gerling Global (1984), 36 Sask.R. 91 (QB)

MLB headnote and full text

Estevan Brick, a division of Thunderbrick Limited v. Gerling Global General Insurance Company

(No. 9 A.D. 1982)

Indexed As: Estevan Brick v. Gerling Global General Insurance Co.

Saskatchewan Court of Queen's Bench

Judicial Centre of Estevan

Halvorson, J.

September 20, 1984.

Summary:

The plaintiff insured sued its insurer for loss sustained to its equipment. The insurer alleged that the loss was not covered under the insurance policy.

The Saskatchewan Court of Queen's Bench allowed the insured's action and held that the insurer was estopped from denying liability under the policy. The court awarded the insured judgment, plus interest on the insurance proceeds wrongfully withheld.

Estoppel - Topic 1103

Estoppel in pais (by conduct) - Representation by statement - Representations which found estoppel - A manager of the plaintiff's insurer orally informed the plaintiff that a particular loss would be covered - Relying on the manager's statement, the plaintiff decided not to purchase a more comprehensive policy at a higher premium - The insurer had paid a previous claim respecting such a loss, because it was for a small amount and to "save face" - The Saskatchewan Court of Queen's Bench held that the insurer was estopped from denying coverage for a subsequent similar loss, because its manager's representation was relied on by the plaintiff to its detriment - See paragraphs 8 to 21.

Cases Noticed:

Harrand v. Saskatchewan Government Insurance Office (1979), 7 Sask.R. 188; 88 D.L.R.(3d) 388, appld. [para. 23].

Authors and Works Noticed:

Spenser-Bower and Turner, Estoppel by Representation (2nd Ed.), p. 4 [para. 3].

Counsel:

G.A. Chicoine and C.J. Sarsons, for the plaintiff;

R.L. Barclay, Q.C., and D. Hunter, for the defendant.

This action was heard before Halvorson, J., of the Saskatchewan Court of Queen's Bench, Judicial Centre of Estevan, whose decision was delivered at Regina, Saskatchewan, on September 20, 1984.