Random Ford Mercury Sales Ltd. v. Noseworthy et al., (1992) 98 Nfld. & P.E.I.R. 221 (NFTD)

• Judge: Adams, J.
• Court: Supreme Court of Newfoundland and Labrador (Canada)
• Case Date: March 20, 1992
• Jurisdiction: Newfoundland and Labrador
• Citations: (1992), 98 Nfld. & P.E.I.R. 221 (NFTD)

Random v. Noseworthy (1992), 98 Nfld. & P.E.I.R. 221 (NFTD);

    311 A.P.R. 221

MLB headnote and full text

Random Ford Mercury Sales Limited (plaintiff) v. David Noseworthy, Central Insurance Services Limited and J.J. Lacey Insurance Limited (defendants)

(1991 St. J. No. 4503)

Indexed As: Random Ford Mercury Sales Ltd. v. Noseworthy et al.

Newfoundland Supreme Court

Trial Division

Adams, J.

September 8, 1992.

Summary:

The plaintiff seller of a boat sued the defendant insurance agents for damages resulting from a negligent representation respecting coverage.

The Newfoundland Supreme Court, Trial Division, allowed the action.

Insurance - Topic 507

Agents - Liability of agent - General - Duty to obtain coverage requested - The seller of a boat refused to permit the buyer to take possession before payment unless he obtained insurance with loss payable to the seller - The buyer requested his insur­ance agent to obtain the coverage - Subsequently, the agent confirmed in writing to the seller that the coverage requested was in place with loss payable to the seller - The seller released the boat and it was lost - The coverage was not obtained - The agent defended the seller's negligence action on the ground that even if it had obtained insurance on the boat, the policy could not have made loss pay­able to the seller - The Newfoundland Supreme Court, Trial Division, held the agent liable in negligence to the seller for its misrepresentation.

Insurance - Topic 513

Agents - General - Negligence - Duty of agent to inform and to obtain coverage - [See Insurance - Topic 507 ].

Torts - Topic 8981

Duty of care - Particular relationships - Negligent words - General - [See Insur­ance - Topic 507 ].

Torts - Topic 8986

Duty of care - Particular relationships - Negligent words - Representation by third party - [See Insurance - Topic 507 ].

Cases Noticed:

MacDonald v. Cook (Charlie) Insurance Inc. (1985), 55 Nfld. & P.E.I.R. 248; 162 A.P.R. 248 (P.E.I.S.C.), consd. [para. 51].

Pittman v. Manufacturers Life Insurance Co. (1990), 88 Nfld. & P.E.I.R. 279; 274 A.P.R. 279 (Nfld. C.A.), consd. [para. 51].

Colony Lincoln Mercury Sales Ltd. v. Haber Insurance Broker Ltd. et al., 11 C.C.L.I. 157, consd. [para. 51].

Gerber v. Eagle Star Insurance Co. Ltd., [1981] I.L.R. 514, appld. [para. 51].

Atwood v. R., 10 C.C.L.I. 62, consd. [para. 51].

Case Existological Laboratories Ltd. v. Century Insurance Co. of Canada et al., 35 B.C.L.R. 364, consd. [para. 51].

Fletcher v. Manitoba Public Insurance Co., [1990] 3 S.C.R. 191; 116 N.R. 1; 71 Man.R.(2d) 81, appld. [para. 51].

Hutchings v. Loveless (1990), 86 Nfld. & P.E.I.R. 313; 268 A.P.R. 313 (Nfld. S.C.), consd. [para. 51].

Hefferman v. Elizabeth Irving Service Center and Maher (1980), 29 Nfld. & P.E.I.R. 470; 82 A.P.R. 470 (Nfld. S.C.), consd. [para. 51].

Mercer v. Paradise (Town) (1991), 91 Nfld. & P.E.I.R. 198; 286 A.P.R. 198 (Nfld. S.C.), consd. [para. 51].

Howell v. Newfoundland (Attorney Gen­eral) (1987), 65 Nfld. & P.E.I.R. 139; 199 A.P.R. 139 (Nfld. S.C.), consd. [para. 52].

AMO Containers Ltd. v. Mobil Oil Canada Ltd. (1989), 75 Nfld. & P.E.I.R. 208; 234 A.P.R. 208 (Nfld. C.A.), consd. [para. 52].

Case Existological Laboratories Ltd. v. Century Insurance Co. of Canada (1982), 35 B.C.L.R. 364 (C.A.), consd. [para. 52].

Canada Rice Mills Ltd. v. Union Mar­ine and General Insurance Co. Ltd., [1941] A.C. 55 (P.C.), consd. [para. 52].

Baxter v. Jones (1903), 6 O.L.R. 360 (C.A.), consd. [para. 52].

Martin (L.B.) Construction Ltd. v. Gaglardi (1978), 91 D.L.R.(3d) 393 (B.C.S.C.), consd. [para. 52].

Fine's Flowers Ltd. v. General Acci­dent Assurance Co. of Canada (1977), 81 D.L.R.(3d) 139 (Ont. C.A.), consd. [para. 52].

Wandlyn Motels Ltd. v. Commerce Gen­eral Insurance Co. (1969), 1 N.B.R.(2d) 213; 1 D.L.R.(3d) 392 (C.A.), consd. [para. 52].

Hedley Byrne & Co. Ltd. v. Heller & Partners Ltd., [1964] A.C. 465 (H.L.), appld. [para. 53].

Authors and Works Noticed:

Brown and Menezes, Insurance Law in Canada (2nd Ed. 1991), pp. 57-64, 285-294 [para. 51].

MacGillivray and Parkington, Insurance Law (7th Ed.), pp. 152-158 [para. 51].

Counsel:

Corwin Mills, Q.C., for the plaintiff;

J. David Eaton, for the defendants.

This case was heard on March 20, 1992, at St. John's, Newfoundland, before Adams, J., of the Newfoundland Supreme Court, Trial Division, who filed the following judg­ment on September 8, 1992: