Kenting Drilling Ltd. v. General Accident Assurance Co. of Canada, (1979) 26 A.R. 90 (TD)

• Judge: Moshansky, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: May 08, 1979
• Citations: (1979), 26 A.R. 90 (TD)

Kenting Drilling Ltd. v. General Accident (1979), 26 A.R. 90 (TD)

MLB headnote and full text

Kenting Drilling Ltd. v. General Accident Assurance Company of Canada

(S.C. 114121)

Indexed As: Kenting Drilling Ltd. v. General Accident Assurance Co. of Canada

Alberta Supreme Court

Trial Division

Judicial District of Calgary

Moshansky, J.

May 8, 1979.

Summary:

This headnote contains no summary.

Insurance - Topic 6907

Liability insurance - Business comprehensive policy - Exclusions, property used by insured - An oil drilling contractor was conducting drilling operations in the Canadian Arctic for C.G.G. - C.G.G. also employed a helicopter firm to transport equipment and employees of the oil drilling contractor - Employees of the drilling contractor negligently caused damage of $123,323.00 to a helicopter while it was on the ground - The defendant insurer denied liability to the drilling contractor for the damage to the helicopter because it was being "used by" the insured - The Alberta Supreme Court, Trial Division, allowed the contractor's action and held the insurer liable - The Trial Division stated that "use" for purposes of the policy means having possession of property and putting the property "to his own service or to its ordinary purpose" - See paragraphs 52 to 54.

Interest - Topic 5304

Interest on payment of debt withheld - Judicature Act, s. 34(16) - Amount due under an insurance contract - The Alberta Supreme Court, Trial Division, awarded an insured interest at "bank prime rates" from January 1, 1974 until judgment - See paragraphs 57 to 59.

Words and Phrases

Used by - The Alberta Supreme Court, Trial Division, discussed the meaning of the words "used by" as found in a liability insurance policy.

Cases Noticed:

Acadia Road Contractors Ltd. v. Canadian Surety Co. (1977), 81 D.L.R.(3d) 169; (1978), 27 N.S.R.(2d) 605; 41 A.P.R. 605, refd to. [para. 21].

Dominion Bridge Co. Ltd. v. Toronto General Ins. Co., [1963] S.C.R. 362; 37 W.W.R. 673 (B.C.C.A.); 34 W.W.R. 289, refd to. [para. 22].

Watts v. Centennial Ins. Co. (1967), 65 D.L.R.(2d) 529 (B.C.S.C.), refd to. [para. 22].

Fraser River Pile Driving Co. Ltd. v. Fidelity Ins. Co. of Canada, [1973] 1 W.W.R. 418 (B.C.S.C.), refd to. [paras. 22, 23].

Watts v. Centennial Insur. Co. (1968), 62 W.W.R. 175 (B.C.S.C.), refd to. [para. 29].

Dominion Bridge Co. Ltd. v. Toronto General Insurance Co. (1962), 37 W.W.R. 673 (B.C.C.A.), refd to. [para. 30].

Indemnity Insurance Co. of North America v. Excel Cleaning Service, [1954] S.C.R. 169, dist. [para. 34].

Hardware Mut. Cas. Co. v. Mason-Moore-Tracy (1952), 194 F.(2d) 173 (U.S. C.A.), refd to. [para. 36].

Sanco Company Inc. v. Employers Mutual Liability Ins. C. of Wis. (1959), 154 A.(2d) 454 (S.C. New Hamp.), refd to. [para. 37].

Maryland Casualty Co. v. Turner (1962), 361 S.W.(2d) 646, (S.C. Ark.), refd to. [para. 38].

Gulf Oil Corporation v. James E. Dean Marine Divers Inc. (1971), 323 F. Supp. 679 (U.S. Dist. Crt.), refd to. [para. 42].

Great American Indemnity Co. v. Saltzman (1954), 213 F.(2d) 743 (U.S. C.A.), refd to. [para. 45].

Boswell v. Travelers Indemnity Co. (1956), 120 A.(2d) 250 (S.C.N.J.-A.D.), refd to. [para. 46].

N.C. Edwards v. Travelers Indemnity Co. (1957), 300 S.W.(2d) 615 (S.C. Tenn.), refd to. [para. 47].

Prince Albert Pulp Company Ltd. et al. v. Foundation Company of Canada Limited (1976), 8 N.R. 181; [1976] 4 W.W.R. 586 (S.C.C.), refd to. [para. 59].

Evaskow v. International Brotherhood of Boilermakers etc. (1969), 71 W.W.R. 565, refd to. [para. 62].

Statutes Noticed:

Judicature Act, R.S.A. 1970, c. 193, sect. 34(16) [para. 57].

Authors and Works Noticed:

Couch on Insurance (2nd Ed.), Vol. 12, page 72 [para. 26].

Counsel:

J.D.B. McDonald, for the plaintiff;

D.A. McDermott, for the defendant.

This case was heard by MOSHANSKY, J., of the Trial Division of the Alberta Supreme Court. The judgment of MOSHANSKY, J., was delivered at Calgary, Alberta, on May 8, 1979.