Leger v. Home Insurance Co., (1968) 1 N.B.R.(2d) 1 (CA)

• Judge: Ritchie, Limerick and Hughes, JJ.A.
• Court: Court of Appeal (New Brunswick)
• Case Date: April 22, 1968
• Jurisdiction: New Brunswick
• Citations: (1968), 1 N.B.R.(2d) 1 (CA);1968 CanLII 393 (ON SC);1968 CanLII 393 (NB QB);[1968] 1 OR 727;1 NBR (2d) 1;67 DLR (2d) 506;[1968] ILR 1

Leger v. Home Ins. Co. (1968), 1 N.B.R.(2d) 1 (CA);

    1 R.N.-B.(2e) 1

MLB headnote and full text

Sommaire et texte intégral

Leger v. Home Insurance Company

Indexed As: Leger v. Home Insurance Co.

Répertorié: Leger v. Home Insurance Co.

New Brunswick Court of Appeal

Ritchie, Limerick and Hughes, JJ.A.

October 3, 1968.

Summary:

Résumé:

Where a building is in a poor state of repair with high fixed charges and high overhead, but producing low rental income, the intrinsic value of the building is five times the gross annual rentals and not the replacement cost.

The New Brunswick Court of Appeal held that the probable future demolition of the building does not affect the intrinsic value of the building at the time of the fire; and that the loss insured is the intrinsic value of the building on the date of loss and not the loss to insured.

The New Brunswick Court of Appeal held that the insurance risk is not affected by a demolition order made by a municipality or by the substitution of a source of electrical supply; and that an alteration in the description of the subject matter of the insurance contract must be necessary in order for a change to affect the risk.

Damages - Topic 1800

Torts affecting goods - General principles - Normal measure - Measure of value - Whether value is loss to insured or intrinsic value on date of loss (New Brunswick Court of Appeal).

Insurance - Topic 2103

The risk - Change in the risk - Whether a change affected the risk - Fire insurance - Whether change material to risk - Demolition order made (New Brunswick Court of Appeal).

Cases Noticed:

Baxendale v. Harvey (1859), 157 E.R. 913, folld.

Maryland Home v. Kimmell (1899), 89 Md. 443, refd to.

Lebanon Insurance v. Kepler (1884), 104 Pa. 28, refd to.

Collingridge v. The Royal Exchange Assurance Corporation (1877-78), 3 Q.B.D. 173 (C.A.), folld.

Ardill v. Citizens' Insurance Company and Aetna Insurance Company (1893), 20 O.A.R. 605, folld.

Washington Mills Emery Manufacturing Company v. Weymouth and Braintree Mutual Fire Insurance Company (1883), 135 Mass. Reports 503 (C.A.), apprvd.

Counsel:

Clarence H. Roy, for appellant, Leger;

D.M. Gillis, Q.C., for the Home Insurance Co.;

Frederick Forbes, Q.C., for Royal Insurance Co.

Appeal from a judgment of Dickson, J. dated April 22, 1968 in favour of the plaintiff/insured in an action under a fire insurance contract for the value of a building.

The judgment of the Court was delivered by Limerick, J.A.