General Accident v. Laurentian Pacific Ins., (1997) 196 A.R. 130 (CA)

• Judge: Hetherington, Foisy and McFadyen, JJ.A.
• Court: Court of Appeal (Alberta)
• Case Date: March 21, 1997
• Jurisdiction: Alberta
• Citations: (1997), 196 A.R. 130 (CA)

General Accident v. Laurentian Pacific Ins. (1997), 196 A.R. 130 (CA);

    141 W.A.C. 130

MLB headnote and full text

General Accident Assurance Company of Canada (respondent/applicant) v. Laurentian Pacific Insurance Company (appellant/respondent)

(Appeal No. 9503-0787-AC)

Indexed As: General Accident Assurance Co. of Canada v. Laurentian Pacific Insurance Co.

Alberta Court of Appeal

Hetherington, Foisy and McFadyen, JJ.A.

March 21, 1997.

Summary:

Cars for Less was a used car dealership. It contracted with Quick Clean to clean and prepare its cars for resale. While driving a Cars for Less vehicle, a Quick Clean employee (Holmes) collided with Swan's vehicle. Swan was injured. At issue was which insurance company would be required to provide compensation to Swan.

The Alberta Court of Appeal held that Holmes was not an insured under Cars for Less's policy because of an exclusion clause in the policy. If Cars for Less was found liable to Swan, it was entitled to seek in­demnity or contribution from Holmes and from the insurer of Holmes' employer, Quick Clean.

Insurance - Topic 2876.1

Subrogation - Between insurers - Cars for Less was a used car dealership - It con­tracted with Quick Clean to clean and prepare its cars for resale - While driving a Cars for Less vehicle, a Quick Clean employee (Holmes) collided with Swan's vehicle - Swan was injured - At issue was which insurance company would be required to provide compensation to Swan - The Alberta Court of Appeal held that Holmes was not an insured under Cars for Less's policy because of an exclusion clause in the policy - If Cars for Less was found liable to Swan, it was entitled to seek indemnity or contribution from Holmes and from Quick Clean's insurer.

Insurance - Topic 4332

Automobile insurance - Exclusions - Scope of garage personnel exclusion - [See Insurance - Topic 2876.1 ].

Cases Noticed:

Waller v. Gulf Oil Canada Ltd., Servico Ltd., Poulin and Zita (1978), 33 N.R. 213 (Ont. C.A.), affd. (1980), 33 N.R. 211 (S.C.C.), refd to. [para. 7].

Statutes Noticed:

Highway Traffic Act, R.S.A. 1980, c. H-7, sect. 181 [para. 4].

Insurance Act, R.S.A. 1980, c. I-5, sect. 309 [para. 4].

Counsel:

G.W. Jaycock, for the respondent, General Accident Assurance Co. of Canada;

E. Macklin, Q.C., for the appellant, Laur­entian Pacific Insurance Co.

This appeal was heard by Hetherington, Foisy and McFadyen, JJ.A., of the Alberta Court of Appeal.

On March 21, 1997, the following memor­andum of judgment was delivered by the court.