Lawrence v. Powell, Hannam, A.B.C. Taxi Co. and Findlay, (1977) 28 N.S.R.(2d) 167 (TD)

• Judge: Hallett, J.
• Court: Supreme Court of Nova Scotia (Canada)
• Case Date: November 07, 1977
• Jurisdiction: Nova Scotia
• Citations: (1977), 28 N.S.R.(2d) 167 (TD)

Lawrence v. Powell (1977), 28 N.S.R.(2d) 167 (TD);

    43 A.P.R. 167

MLB headnote and full text

Lawrence v. Powell, Hannam, A.B.C. Taxi Co. Ltd., and Findlay

Indexed As: Lawrence v. Powell, Hannam, A.B.C. Taxi Co. and Findlay

Nova Scotia Supreme Court

Trial Division

Hallett, J.

November 7, 1977.

Summary:

This case arose out of an action for damages arising out of a motor vehicle accident. The defendant's insurer refused to defend the named insured because the named insured in his application for an owner's motor vehicle liability policy failed to disclose that another person owned the insured car. The plaintiff applied to Judgment Recovery (N.S.) Ltd. Judgment Recovery (N.S.) Ltd. applied under s. 193A of the Motor Vehicle Act to determine whether the insurer was liable under the policy issued to the named insured.

The Nova Scotia Supreme Court, Trial Division held that the insurer was not liable on the policy. The Trial Division stated that the policy was void ab initio because the named insured did not own the insured vehicle. The Trial Division stated that the right of the insurer to raise such a defence was not taken away by s. 98(5) of the Insurance Act.

Insurance - Topic 4603

Automobile insurance - Actions by third parties against an insurer on a public liability policy - Defence by insurer respecting the validity of the policy - An insurer issued an owner's motor vehicle liability policy to a person who failed to disclose in his application that another person owned the insured car - The car was involved in an accident and a third party sued the named insured for damages for property damage and personal injuries - The Nova Scotia Supreme Court, Trial Division held that the insurer was not liable on the policy - The Trial Division stated that the policy was void ab initio because the named insured did not own the insured vehicle.

Cases Noticed:

Bourgeois et al. v. Prudential Assurance Co. Ltd., [1946] 1 D.L.R. 139, refd to. [paras. 14, 17].

Minister of Transport et al. v. London & Midland General Insurance Co. (1971), 19 D.L.R.(3d) 643, folld. [paras. 15, 19].

Comer v. Bussell et al., [1940] 1 D.L.R. 97, refd to. [para. 17].

Somers and Somers v. Brow's Estate and Co-Operative Fire and Casualty Company (1975), 16 N.S.R.(2d) 188, refd to. [para. 18].

Blair et al. v. Royal Exchange Assurance (1968), 67 D.L.R.(2d) 420, refd to. [para. 19].

Statutes Noticed:

Insurance Act, S.N.S. 1966, c. 79, sect. 98(5) [para. 13].

Counsel:

A.L. Graham, for the plaintiff;

R.L. Weldon, for the defendant, Clement Lloyd Hannam;

V.L. Pettipas, for the defendant, Donald Powell;

David Miller, for Royal Insurance Company;

C.P. McLellan, for Judgment Recovery (N.S.) Ltd.

This application was heard by HALLETT, J. of the Trial Division of the Nova Scotia Supreme Court at Halifax, Nova Scotia on September 12, 1977.

The judgment of HALLETT, J. was delivered at Halifax, Nova Scotia on November 7, 1977.