McClelland and Stewart Ltd. v. Mutual Life Assurance Co. of Canada, (1981) 37 N.R. 190 (SCC)

• Judge: Martland, Dickson, Estey, Chouinard and Lamer, JJ.
• Court: Supreme Court (Canada)
• Case Date: June 22, 1981
• Jurisdiction: Canada (Federal)
• Citations: (1981), 37 N.R. 190 (SCC);37 NR 190;125 DLR (3d) 257;[1981] 2 SCR 6;9 ACWS (2d) 264;1981 CanLII 53 (SCC);[1981] SCJ No 60 (QL)

McClelland & Stewart Ltd. v. Mut. Life (1981), 37 N.R. 190 (SCC)

MLB headnote and full text

McClelland and Stewart Ltd. v. Mutual Life Assurance Co. of Canada

Indexed As: McClelland and Stewart Ltd. v. Mutual Life Assurance Co. of Canada

Supreme Court of Canada

Martland, Dickson, Estey, Chouinard and Lamer, JJ.

June 22, 1981.

Summary:

This case arose out of a claim by a beneficiary to the proceeds of a life insurance policy. The insurer refused to pay on the ground that the insured committed suicide within two years of the effective date of the policy. The policy was delivered on February 28, 1968 but the policy stated a commencement date of January 23, 1968. The trial court allowed the beneficiary's action for the proceeds and held that for purposes of the suicide clause the effective date of the policy was January 23, 1968. The insurer appealed to the Ontario Court of Appeal.

The Ontario Court of Appeal allowed the appeal and set aside the trial court judgment. The beneficiary appealed to the Supreme Court of Canada.

The Supreme Court of Canada allowed the appeal, set aside the judgment of the Ontario Court of Appeal and restored the judgment of the trial court.

Estey and Martland, JJ., dissenting, in the Supreme Court of Canada, would have dismissed the appeal.

Insurance - Topic 7045

Life insurance - The contract - Time policy commences - A policy was delivered on February 28, 1968, but the policy stated a commencement date of January 23, 1968 - The Supreme Court of Canada interpreted the policy and held that for purposes of a self-destruction or suicide clause that the effective date of the policy was January 23, 1968.

Cases Noticed:

Consolidated-Bathurst Export Limited v. Mutual Boiler and Machinery Insurance Company, 32 N.R. 488; [1980] 1 S.C.R. 888, refd to. [para. 25].

Losier v. St. Paul Mercury Indemnity Company, [1957] O.W.N. 97, refd to. [para. 25].

New York Life Insurance Company v. Dubuc, [1926] S.C.R. 272, refd to. [para. 27].

Statutes Noticed:

Insurance Act, R.S.C. 1970, c. 224, sect. 148(2) [paras. 4, 16]; sect. 154 [para. 14].

Counsel:

David I. Bristow, Q.C., and R.J. Otter, for the appellant;

Colin Campbell, Q.C., and Claude Gingras, for the respondent.

This appeal was heard by MARTLAND, DICKSON, ESTEY, CHOUINARD and LAMER, JJ., of the Supreme Court of Canada at Ottawa, Ontario, on February 26, 1981.

The judgment of the Supreme Court of Canada was delivered on June 22, 1981, and the following opinions were filed:

DICKSON, J. - see paragraphs 1 to 11;

ESTEY, J., dissenting - see paragraphs 12 to 29.

CHOUINARD and LAMER, JJ., concurred with DICKSON, J.

MARTLAND, J., concurred with ESTEY, J.