Stats v. Mutual of Omaha Insurance Co., (1978) 22 N.R. 91 (SCC)
| Judge | Laskin, C.J.C., Martland, Spence, Pigeon and Estey, JJ. |
| Court | Supreme Court (Canada) |
| Case Date | June 29, 1978 |
| Jurisdiction | Canada (Federal) |
| Citations | (1978), 22 N.R. 91 (SCC);1978 CanLII 38 (SCC);22 NR 91;[1978] 2 SCR 1153;87 DLR (3d) 169;[1978] SCJ No 56 (QL);[1978] ILR 1188 |
Stats v. Mutual of Omaha (1978), 22 N.R. 91 (SCC)
MLB headnote and full text
Stats v. Mutual of Omaha Insurance Company
Indexed As: Stats v. Mutual of Omaha Insurance Co.
Supreme Court of Canada
Laskin, C.J.C., Martland, Spence, Pigeon and Estey, JJ.
June 29, 1978.
Summary:
This case arose out of the action by a beneficiary against the insurer on an accident insurance policy. The insured woman, who was impaired, became disoriented after a slight collision. Although the driver with whom she collided asked her if she was alright and offered to drive her vehicle for her, she drove off erratically at high speed through two stop signs across busy through streets and crashed head on into a building on the other side of a T-intersection, killing herself and a passenger. The insurer refused payment under the policy on the ground that the crash was not an accident. The beneficiary brought an action against the insurer on the policy. The Ontario Supreme Court dismissed the beneficiary's action in a judgment reported 6 O.R.(2d) 734; 54 D.L.R.(3d) 29. The beneficiary appealed. The Ontario Court of Appeal allowed the appeal in a judgment reported 14 O.R.(2d) 233; 73 D.L.R.(3d) 324. The insurer appealed.
The Supreme Court of Canada dismissed the appeal and affirmed the judgment of the Ontario Court of Appeal. The Supreme Court of Canada held that the crash was an accident. The Supreme Court of Canada held that, although the woman was grossly negligent, she could not be said to have courted the risk of injury, where the minor collision appeared to have caused her impairment to well up and disable her mentally. See paragraphs 1 to 29.
Martland, J., dissenting, was of the opinion that the crash was not an accident, where the woman voluntarily drove her vehicle in a reckless and foolhardy manner while intoxicated. See paragraphs 30 to 57.
Insurance - Topic 2033
The risk - Extent of the risk - Accident - What constitutes - The deceased woman, who was impaired, became disoriented after a slight collision and drove off erratically at high speed through two stop signs across busy through streets and crashed head on into a building on the other side of a T-intersection, killing herself and a passenger - Prior to the minor collision the woman showed no signs of impairment - The Supreme Court of Canada held that the crash was an accident within the meaning of the deceased's accident insurance policy - See paragraphs 1 to 29.
Insurance - Topic 2034
The risk - Extent of the risk - Accident - Whether insured invited the risk - The deceased woman who was impaired, became disoriented after a slight collision and drove off erratically at high speed through two stop signs across busy through streets and crashed head on into a building on the other side of a T-intersection, killing herself and a passenger - Prior to the minor collision the woman showed no signs of impairment - The Supreme Court of Canada held that, although the woman was grossly negligent, she could not be said to have courted the risk of injury, where the minor collision appeared to have caused her impairment to well up and disable her mentally - See paragraphs 1 to 29.
Words and Phrases
Accident - The Supreme Court of Canada discussed the meaning of the word "accident" in an accident insurance policy - See paragraphs 1 to 29.
Cases Noticed:
Canadian Indemnity Company v. Walkem Machinery & Equipment Ltd. et al. (1975), 3 N.R. 523; [1976] 1 S.C.R. 309, appld. [para. 22, 46].
Straits Towing Ltd. et al. v. Walkem Machinery & Equipment Ltd. and Canadian Indemnity Company (1975), 3 N.R. 523; [1976] 1 S.C.R. 309, appld. [para. 22 and 46].
Fenton v. Thorley & Co. Limited, [1903] A.C. 443, appld. [para. 25].
Candler v. London & Lancashire Guarantee & Accident Co. of Canada et al., [1963] 2 O.R. 547, dist. [para. 26].
Allred v. Prudential Insurance Co. of America, 100 S.E.(2d) 226, refd to. [para. 40].
Marshall Wells of Canada Ltd. v. Winnipeg Supply and Fuel Company Limited (1964), 49 W.W.R.(N.S.) 664, refd to. [para. 48].
Authors and Works Noticed:
Halbury's Laws of England (3rd Ed.), vol. 22, page 293, para. 585 [paras. 38, 52].
Counsel:
D.K. Laidlaw, Q.C. and Burton Tait, for the appellant;
Douglas W. Goudie, Q.C., for the respondent.
This case was heard on February 23 and 24, 1978, at Ottawa, Ontario, before LASKIN, C.J.C., MARTLAND, SPENCE, PIGEON and ESTEY, JJ., of the Supreme Court of Canada.
On June 29, 1978, the judgment of the Supreme Court of Canada was delivered and the following opinions were filed:
SPENCE, J. - see paragraphs 1 to 29;
MARTLAND, J., dissenting - see paragraphs 30 to 57.
LASKIN, C.J.C., PIGEON, and ESTEY, JJ., concurred with SPENCE, J.
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