Nowsco Well Service Ltd. v. Royal Insurance Co. of Canada, (1988) 90 A.R. 270 (QB)

• Judge: Mason, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: July 11, 1988
• Citations: (1988), 90 A.R. 270 (QB)

Nowsco Well Service Ltd. v. Royal Ins. (1988), 90 A.R. 270 (QB)

MLB headnote and full text

Royal Insurance Company of Canada (plaintiff) v. Saskatchewan Government Insurance (defendant)

(No. 8301-13569)

Nowsco Well Service Ltd. (plaintiff) v. Royal Insurance Company of Canada, Saskatchewan Government Insurance Company and Dale & Company Limited (defendants), Royal Insurance Company of Canada (third party)

(No. 8301-33824)

Saskatchewan Government Insurance Office (plaintiff) v. Nowsco Well Service Ltd. (defendant) and the Royal Insurance Company of Canada (third party)

(No. 8401-17658)

Indexed As: Nowsco Well Service Ltd. v. Royal Insurance Co. of Canada

Alberta Court of Queen's Bench

Judicial District of Calgary

Mason, J.

July 11, 1988.

Summary:

Nowsco's truck was at fault in an accident. Two insurers had issued liability policies insuring Nowsco's truck. The decision reported below concerned several questions submitted by the insurers (see paragraph 3).

The Alberta Court of Queen's Bench answered the questions.

Insurance - Topic 4516

Automobile insurance - Actions - Defence by insurer - Multiple insurers, sharing of costs and fees - After third party litigation was concluded, two insurers applied to determine legal liability for costs and fees - The Alberta Court of Queen's Bench ordered a sharing pro rata in accordance with the respective liability for damages of each insurer (see paragraphs 22 and 23).

Insurance - Topic 4631

Automobile insurance - Recovery by insurer from insured for payments to third parties - For payments required by minimum limits in other provinces - A Saskatchewan insurer issued a motor vehicle liability policy to Nowsco with policy limits of $35,000 (being the Saskatchewan minimum limit) - Nowsco's truck was at fault in an accident in Alberta where the Saskatchewan insurer had agreed to provide the Alberta minimum limits of $100,000 - The insurer paid $100,000 to judgment creditors of Nowsco and then claimed $65,000 from Nowsco - The Alberta Court of Queen's Bench held that the insurer was not entitled to seek indemnity of $65,000 for Nowsco (see paragraphs 6 to 20).

Statutes - Topic 2601

Interpretation of words and phrases - Interpretation by context - The Alberta Court of Queen's Bench stated that all statutes must be interpreted in their contextual framework in keeping with the scheme and purpose of the statute (see paragraph 11).

Cases Noticed:

Kolmatyki v. Walker and Manitoba Public Insurance Corporation (1979), 28 A.R. 40; 15 Alta. L.R.(2d) 76, refd to. [para. 9].

R. v. Pare (1988), 80 N.R. 272; 11 Q.A.C. 1 (S.C.C.), refd to. [para. 11].

MacDonald v. Proctor et al. (1978), 86 D.L.R.(3d) 455, refd to. [para. 16].

Economic Mutual Insurance Company v. Insurance Corporation of British Columbia (1986), 72 A.R. 374, refd to. [para. 22].

Statutes Noticed:

Automobile Accident Insurance Act, R.S.S. 1965, c. 409, sect. 50(1) [para. 3]; sect. 50(2), sect. 50(3) [para. 7].

Insurance Act, R.S.A. 1980, c. I-5, sect. 319 [para. 22].

Counsel:

R.J. Hall and T.C. Brennan, for Royal Insurance Company of Canada;

B.C. Yorke-Slader, for Nowsco Well Service Ltd.;

R.P. Belzil, for Saskatchewan Government Insurance Office;

A.R. Robertson, for Dale and Company Limited.

This case was heard by Mason, J., of the Alberta Court of Queen's Bench. The decision of Mason, J., was delivered at Calgary, Alberta, on July 11, 1988.