Garand v. Mutual of Omaha Insurance Co. et al., (2001) 296 A.R. 257 (QB)

• Judge: Watson, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: August 17, 2001
• Citations: (2001), 296 A.R. 257 (QB);2001 ABQB 726

Garand v. Mutual of Omaha (2001), 296 A.R. 257 (QB)

MLB headnote and full text

Temp. Cite: [2001] A.R. TBEd. AU.107

George Garand (plaintiff) v. Mutual of Omaha Insurance Company and Fran Harper (defendants)

(No. 9503 10650; 2001 ABQB 726)

Indexed As: Garand v. Mutual of Omaha Insurance Co. et al.

Alberta Court of Queen's Bench

Judicial District of Edmonton

Watson, J.

August 17, 2001.

Summary:

In March 1994 Garand purchased an accident and sickness policy from an insurer. In July 1994 Garand filed a claim under the policy for disability benefits. The insurer rejected the claim on the ground that Garand failed to disclose in his application material facts relating to treatment he received for a previous illness. Garand sued the insurer for damages.

The Alberta Court of Queen's Bench dismissed Garand's action. The court held that the policy was void because of material misrepresentations made by Garand to the insurer.

Insurance - Topic 1506

The insurance contract - Nullity - Nullity ab initio - Failure to disclose - Garand sued an insurer for damages for rejecting Garand's claim to disability benefits under an accident and sickness policy - The insurer alleged that the policy was void because of Garand's failure to disclose material facts in his application for the policy - The Alberta Court of Queen's Bench dismissed Garand's action and held that the policy was void.

Insurance - Topic 2490

Applicant's duty of disclosure - Default in duty to disclose - Misrepresentation - What constitutes - [See Insurance - Topic 1506 ].

Cases Noticed:

Broda v. Broda (2001), 286 A.R. 120; 253 W.A.C. 120 (C.A.), refd to. [para. 17, footnote 1].

R. v. McGibbon (1988), 31 O.A.C. 10; 45 C.C.C.(3d) 334 (C.A.), refd to. [para. 23, footnote 2].

R. v. G.D.B., [2000] 1 S.C.R. 520; 253 N.R. 201; 261 A.R. 1; 225 W.A.C. 1; 143 C.C.C.(3d) 289; 32 C.R.(5th) 207; [2000] 8 W.W.R. 193; 81 Alta. L.R.(3d) 1, affing. (1999), 232 A.R. 307; 195 W.A.C. 307; 133 C.C.C.(3d) 309; 42 W.C.B.(2d) 1 (C.A.), refd to. [para. 23, footnote 3].

Olson et al. v. General Accident Assurance Co. of Canada (2001), 281 A.R. 324; 248 W.A.C. 327 (C.A.), refd to. [para. 30, footnote 4].

Lapointe v. Cie Laurentienne/Impériale, [1977] A.Q. No. 617 (S.C.), refd to. [para. 30, footnote 5].

Blanchette v. C.I.S. Ltd., [1973] S.C.R. 833; 36 D.L.R.(3d) 561; [1973] 5 W.W.R. 547, refd to. [para. 47, footnote 6].

Newsholme Brothers v. Road Transport and General Insurance Co., [1929] 2 K.B. 356, refd to. [para. 48, footnote 7].

Salata v. Continental Insurance Co., [1948] 2 D.L.R. 663 (Ont. C.A.), refd to. [para. 49, footnote 9].

New York Life Assurance Co. v. Fletcher (1886), 117 U.S. 519 (U.S. Sup. Ct.), refd to. [para. 49, footnote 10].

Vrbancic v. London Life Insurance Co. (1995), 83 O.A.C. 321; 127 D.L.R.(4th) 656; 25 O.R.(3d) 710; [1995] I.L.R. 1-3251 (C.A.), refd to. [paras. 53, 70, footnotes 11, 19].

Creditel of Canada Ltd. v. Terrace Corp. (Construction) Ltd. and Terrace Inn (1983), 50 A.R. 311; 4 D.L.R.(4th) 59 (C.A.), refd to. [para. 61, footnote 12].

Steve's Contracting Ltd. v. Williams et al. (1996), 195 A.R. 114 (Q.B.), refd to. [para. 61, footnote 13].

Queen (D.J.) v. Cognos Inc., [1993] 1 S.C.R. 87; 147 N.R. 169; 60 O.A.C. 1; 99 D.L.R.(4th) 626, reving. (1990), 38 O.A.C. 180; 74 O.R.(2d) 176; 69 D.L.R.(4th) 288; 30 C.C.E.L. 1; 90 C.C.L.C. 14,024 (C.A.), refd to. [para. 62, footnote 14].

Hoffart v. Revere (Paul) Life Insurance Co. (1995), 136 Sask.R. 223 [1996] I.L.R. 1-3272 (Q.B.), refd to. [para. 69, footnote 16].

Henwood v. Prudential Insurance Co. of America, [1967] S.C.R. 720; 64 D.L.R.(2d) 715, refd to. [para. 70, footnote 17].

Mutual Life Insurance Co. of New York v. Ontario Metal Products Co., [1925] A.C. 344 (P.C.), refd to. [para. 70, footnote 18].

Silva v. Sizoo et al. (1997), 48 O.T.C. 347; 50 C.C.L.I.(2d) 293; [1999] I.L.R. I-3682; 1997 CarswellOnt 4677 (Gen. Div.), refd to. [para. 71, footnote 20].

Hagey v. Colonia Life Insurance Co. (1998), 72 O.T.C. 133; [1998] I.L.R. I-3600; 7 C.C.L.I.(3d) 45; 1998 CarswellOnt 3381 (Gen. Div.), refd to. [para. 71, footnote 21].

Coronation Insurance Co. et al. v. Taku Air Transport Ltd. et al., [1991] 3 S.C.R. 622; 131 N.R. 241; 6 B.C.A.C. 161; 13 W.A.C. 161; 95 D.L.R.(4th) 609, refd to. [para. 71, footnote 22].

Carter v. Boehm (1766), 3 Burr. 1905; 97 E.R. 1162 (K.B.), refd to. [para. 72, footnote 23].

Rheault v. Cie d'assurance Combined d'Amérique (1985), 14 C.C.L.I. 295 (Que.), dist. [para. 87, footnote 25].

Adams-Eden Furniture Ltd. v. Kansa General International Insurance Co. et al. (1996), 113 Man.R.(2d) 142; 131 W.A.C. 142; 141 D.L.R.(4th) 288 (C.A.), refd to. [para. 105, footnote 28].

Pusateri's Ltd. v. Prudential of America Life Insurance Co. (Canada), [1999] O.T.C. Uned. 312; [1999] I.L.R. I-3703; 1999 CarswellOnt 1167 (Sup. Ct.), refd to. [para. 109, footnote 29].

MacDonald v. Mutual of Omaha Insurance Co. (1987), 77 N.S.R.(2d) 128; 191 A.P.R. 128; 36 D.L.R.(4th) 491; 25 C.C.L.I. 91 (C.A.), leave to appeal refused (1987), 79 N.R. 348; 79 N.S.R.(2d) 355; 196 A.P.R. 355 (S.C.C.), refd to. [para. 132, footnote 31].

Porter v. Metropolitan Life Insurance Co. (1985), 70 N.S.R.(2d) 248; 166 A.P.R. 248; 23 D.L.R.(4th) 737 (C.A.), refd to. [para. 132, footnote 32].

Adams v. Confederation Life Insurance Co. (1994), 152 A.R. 121 (Q.B.), refd to. [para. 133, footnote 33].

R. v. Abbey, [1982] 2 S.C.R. 24; 43 N.R. 30; 29 C.R.(3d) 193; [1983] 1 W.W.R. 251; 39 B.C.L.R. 201; 68 C.C.C.(2d) 394; 138 D.L.R.(3d) 202, refd to. [para. 138, footnote 34].

Athey v. Leonati, [1996] 3 S.C.R. 458; 203 N.R. 36; 81 B.C.A.C. 243; 132 W.A.C. 243, reving. [1995] B.C.J. No. 666; 54 A.C.W.S.(3d) 503 (C.A.), affing. (1994), 44 A.C.W.S.(3d) 908 (B.C.S.C.), refd to. [para. 141, footnote 35].

Mackie et al. v. Wolfe (1996), 184 A.R. 339; 122 W.A.C. 339 (C.A.), refd to. [para. 141, footnote 36].

Warrington v. Great-West Assurance Co. (1996), 81 B.C.A.C. 164; 132 W.A.C. 164; 24 B.C.L.R.(3d) 1 (C.A.), refd to. [para. 145, footnote 37].

Statutes Noticed:

Insurance Act, R.S.A. 1980, c. I-5, sect. 365(1), sect. 365(2) [para. 66].

Authors and Works Noticed:

Brown, Craig, Insurance Law in Canada (1999), vol. 1, pp. 5-2, 5-3 [para. 65, footnote 15].

Fridman, Gerald Henry Louis, The Law of Agency (6th Ed. 1990), pp. 205, 206 [para. 105, footnote 26].

Halsbury's Laws of England (1990) (4th Ed. - Reissue), vol. 1(2), para. 147; vol. 25, para. 381 [para. 105, footnote 27].

Ivamy, E.R. Hardy, General Principles of Insurance Law (6th Ed. 1993), pp. 169 to 173 [para. 114, footnote 30].

Counsel:

George Garand, in person, for the plaintiff;

Thomas E. Valentine, for the defendants.

This action was heard on March 12 to 20, 2001, by Watson, J., of the Alberta Court of Queen's Bench, Judicial District of Edmonton, who delivered the following decision on August 17, 2001.