Piedmontese Breeding Co-Operative Ltd. v. Madill, (1985) 40 Sask.R. 144 (CA)

• Judge: Bayda, C.J.S., Cameron and Vancise, JJ.A.
• Court: Court of Appeal (Saskatchewan)
• Case Date: June 20, 1985
• Jurisdiction: Saskatchewan
• Citations: (1985), 40 Sask.R. 144 (CA)

Piedmontese Breeding Co-op v. Madill (1985), 40 Sask.R. 144 (CA)

MLB headnote and full text

Piedmontese Breeding Co-Operative Ltd. v. Madill

Indexed As: Piedmontese Breeding Co-Operative Ltd. v. Madill

Saskatchewan Court of Appeal

Bayda, C.J.S., Cameron and Vancise, JJ.A.

June 20, 1985.

Summary:

Piedmontese was awarded judgment on a policy of insurance but the trial judge refused to award Piedmontese interest as damages - see paragraphs 32 to 49. Piedmontese appealed.

The Saskatchewan Court of Appeal affirmed the liability of the insurer but reserved judgment on the matter of interest - see paragraphs 28 to 31.

The Saskatchewan Court of Appeal allowed the appeal with respect to the matter of interest and awarded Piedmontese interest as damages for a period of 31 months at 13% under s. 47(3) of the Queen's Bench Act.

Interest - Topic 5302.2

Interest as damages - Interest on payment of money or debt withheld - Not legally entitled to withhold - The Saskatchewan Court of Appeal awarded interest as damages against an insurer where it failed to pay a loss claimed for a period of 31 months prior to the date of judgment - The court compared the requirements of s. 47(3) and s. 46 of the Queen's Bench Act - The court stated that under s. 47(3) an insurer is not entitled to withhold that to which the insured was legally entitled (see paragraphs 7 to 21).

Interest - Topic 5304

Interest as damages - Interest on payment of money or debt withheld - Amount due under an insurance contract - An insurer withheld payment to an insured without justification for a period of 31 months - The Saskatchewan Court of Appeal awarded the insured interest as damages (at 13%) under s. 47(3) of the Queen's Bench Act - The court stated that interest can be awarded under s. 47(3) where the insurer withheld that to which the insured was legally entitled (see paragraph 21).

Interest - Topic 5318

Interest as damages - Interest on payment of money or debt withheld - Defences - The Saskatchewan Court of Appeal stated that an insurer cannot avoid the payment of interest on the amount of a loss on the ground that the insurer did not know the extent of the loss (see paragraph 23).

Cases Noticed:

Prince Albert Pulp Company Ltd. and Parsons and Whittimore Pulp Mills Inc. v. Foundation Company of Canada Ltd., [1976] 4 W.W.R. 586; 8 N.R. 181 (S.C.C.), refd to. [para. 7].

Chambers v. Leach, [1976] 4 W.W.R. 568 (Man. C.A.), refd to. [para. 8].

Ottawa v. Ottawa Electric Ry. Co., [1936] 4 D.L.R. 539, aff'd. [1937] 2 D.L.R. 534 (Ont. C.A.), refd to. [para. 8].

Eyben v. K.R. Ranches (1970) Ltd., [1982] 5 W.W.R. 269; 38 A.R. 336 (Alta. C.A.), refd to. [para. 8].

Higgins v. Sargeant (1823), 107 E.R. 414, refd to. [para. 9].

Page v. Newman (1829), 109 E.R. 140, refd to. [para. 10].

Webster v. British Empire Mutual Life Assurance Company (1880), 15 Ch. D. 169, refd to. [para. 13].

Green v. Manitoba Assurance Company (1901), 13 Man. L.R. 395, refd to. [para. 14].

Robinson, Little Co. v. Midland (1916), 10 W.W.R. 824, refd to. [para. 14].

Harrand v. S.G.I.O., [1979] 4 W.W.R. 478; 7 Sask.R. 188, refd to. [para. 14].

Bodnorchuk and Nawakowsky v. Union Marine and General Insurance Company Limited (1957), 22 W.W.R.(N.S.) 389; 9 D.L.R.(2d) 179, reversed [1958] S.C.R. 399, refd to. [para. 17].

Pacific Coast Freighters v. Westchester Fire Ins. Co., [1926] 4 D.L.R. 963, aff'd. [1927] 2 D.L.R. 590 (B.C.C.A.), refd to. [para. 18].

Horseshoe Creek Farms Ltd. v. Sterling Structures Co. Ltd. (1982), 15 Sask.R. 57, refd to. [para. 19].

Elite Cafe Limited v. Baloise Fire Ins. Co. of America, [1932] 3 W.W.R. 625 (Sask. C.A.), refd to. [para. 20].

Ross v. Scottish Union and National Insurance Co. (1918), 58 S.C.R. 169, refd to. [para. 23].

City of London v. Citizens Ins. Co., 13 O.R. 713, refd to. [para. 23].

Law Society of Alberta v. Continental Insurance Company (1984), 56 A.R. 98, refd to. [para. 23].

Statutes Noticed:

Queen's Bench Act, R.S.S. 1978, c. Q-1, sect. 46, sect. 47 [para. 15].

Lord Tenterden's Act, 3 and 4 William IV, c. 42 [paras. 11 and 12].

Civil Procedure Act, 3 and 4 William IV, c. 42 [paras. 11 and 12].

Authors and Works Noticed:

Manitoba Law Reform Commission, Report on Prejudgment Compensation on Money Awards: Alternatives to Interest [para. 19].

Counsel:

P.J. Lewans, for the appellant;

H.R. Kloppenburg and M. Kobrynsky, for the respondent.

This appeal was heard by Bayda, C.J.S., Cameron and Vancise, JJ.A., of the Saskatchewan Court of Appeal.

The decision of the Court of Appeal was delivered on June 20, 1985, and the following opinions were filed:

Cameron, J.A. - see paragraphs 1 to 26;

Vancise, J.A., dissenting - see paragraph 27.

Bayda, C.J.S., concurred with Cameron, J.A.