McLeod v. Tanner and Lunenburg Insurance Agencies Ltd. et al., (1979) 33 N.S.R.(2d) 343 (TD)

• Judge: Morrison, J.
• Court: Supreme Court of Nova Scotia (Canada)
• Case Date: January 17, 1979
• Jurisdiction: Nova Scotia
• Citations: (1979), 33 N.S.R.(2d) 343 (TD)

McLeod v. Tanner (1979), 33 N.S.R.(2d) 343 (TD);

    57 A.P.R. 343

MLB headnote and full text

McLeod v. Tanner, Lunenburg Insurance Agencies Ltd., New Hampshire Insurance Co., Continental Insurance Co. (third party) and Dominion Insurance Corp. (third party)

(S. LB No. 0140)

Indexed As: McLeod v. Tanner and Lunenburg Insurance Agencies Ltd. et al.

Nova Scotia Supreme Court

Trial Division

Morrison, J.

January 17, 1979.

Summary:

This case arose out of a claim under a fire insurance policy following a fire loss. The policy was a subscription policy which incorrectly named an insurer who was stated to have subscribed to 40 per cent of the risk. The local agent failed to notice the error and subsequently the insured suffered a fire loss. The insured claimed damages against the insurance agent. The insurance agent claimed indemnity from the insurer which issued the defective policy.

The Nova Scotia Supreme Court, Trial Division, held that the insurance agent was negligent and liable to the insured. The Trial Division held that the insurer who issued the policy was also negligent and ordered the insurer to pay to the agent 50 per cent of the insured's damages.

Insurance - Topic 513

Agents - Liability of agent, duty to obtain coverage - A drugstore owner was insured against loss by fire under a subscription policy - After a fire it was discovered that 40 per cent of the risk under the policy was not placed with an insurer - The Nova Scotia Supreme Court, Trial Division, held that the insurance agent was liable in negligence to the drugstore owner for failure to obtain effective insurance coverage - See paragraphs 25 to 30 - The Trial Division awarded the insured $31,400.00 plus interest (see paragraph 37).

Insurance - Topic 745

Insurers - Negligence - Content of policy - An insurer issued a subscription fire policy which incorrectly named another insurer who was stated to have subscribed to 40 per cent of the risk - The local agent failed to notice the error and subsequently the insured suffered a fire loss - The Nova Scotia Supreme Court, Trial Division, held that the insurer was negligent in issuing such a policy (see paragraphs 38 to 44).

Interest - Topic 5136

Interest as damages - Negligence - The defendant insurance agent was held liable in negligence for failing to obtain effective coverage for a fire loss - The Nova Scotia Supreme Court, Trial Division, awarded the plaintiff damages of $31,400.00 plus interest at bank rates from the date that the loss should have been paid (had the coverage been obtained) to the date of judgment (see paragraphs 34 to 37).

Cases Noticed:

Menna v. Guglietti, [1969] 10 D.L.R. (3d) 132, refd to. [para. 27].

Hedley Byrne & Company Limited v. Heller & Partners Limited, [1963] 2 All E.R. 575, refd to. [para. 31].

Myers v. Thompson and London Life Insurance Company (1965), 63 D.L.R.(2d) 476, refd to. [para. 31].

Sydney Rotary Drilling Services Limited v. Quebec Assurance Company, [1975] 16 N.S.R.(2d) 233; 16 A.P.R. 233, refd to. [para. 35].

Webb Real Estate v. Mclnnes, Meehan and Tramble et al. (1977), 20 N.S.R.(2d) 6; 27 A.P.R. 6, refd to. [para. 35].

Authors and Works Noticed:

Ivany, Principles of Insurance Law (2nd Ed.), p. 464 [para. 26]; 470 [para. 33].

Halsbury's Law of England (4th Ed.), vol. 1, para. 776, 778 [para. 29].

Counsel:

C.G. McCormick, for the plaintiff;

Robert C. Hebb and Douglas Caldwell, for the defendants;

John M. Barker, for the third parties.

This case was heard by MORRISON, J., of the Trial Division of the Nova Scotia Supreme Court at Bridgewater, Nova Scotia, on March 16 and 17, 1978, and at Halifax, Nova Scotia on December 4, 1978.

The judgment of MORRISON, J., was delivered at Halifax, Nova Scotia, on January 17, 1979.