Wallace v. Co-op Fire, [1968] N.B. Law News No. 63 (CA)

• Judge: Bridges, C.J.N.B., Ritchie and Limerick, JJ.A.
• Court: Court of Appeal (New Brunswick)
• Case Date: May 23, 1968
• Jurisdiction: New Brunswick
• Citations: [1968] N.B. Law News No. 63 (CA)

Wallace v. Co-op Fire, [1968] N.B. Law News No. 63 (CA)

MLB Law News

Wallace v. Co-Operative Fire and Casualty Co.

Indexed As: Wallace v. Co-Operative Fire and Casualty Co.

New Brunswick Supreme Court

Appeal Division

Bridges, C.J.N.B., Ritchie and Limerick, JJ.A.

May 23, 1968.

Summary:

Insurance Auto - Interpretation - Appeal dismissed with costs and appeal court affirmed the trial court judgment by finding Df. Appellant Insurance Co. liable for property damage of $1,500. under a binder issued by Company's Agent extending the term of a standard motor vehicle liability policy for 15 days. The damage occurred after 12:01 a.m. on the 15th day and the Company refused payment and relied on a clause of the policy stating the term to be,

"12:01 a.m. standard time at the residence addressed stated herein as to each of the said dates."

(Editor: "said dates" refers to the commencement and expiry dates of the policy).

Appeal Court found that in the absence of qualifying words a binder extending coverage continues until the last moment of the last day of the term specified in the binder. Court stated,

"In the absence of express reference in a binder or cover note to the terms and conditions of a policy the binder is a contract of insurance distinct from that contained in the policy to which it pertains. The right of recovery of the insured and the liability of the insurer to indemnify in respect of any loss which occurs during the currency of the binder must be determined by the terms of the binder, not by the terms of the policy. Likewise, the currency of the binder depends on the terms contained therein, not on the provisions of the policy respecting its duration. 22 Halsbury Laws of England (3rd edition) page 208 and cases there cited."

For summary of trial judgment see N.B. Law News, January 1, 1968 #68-9.

Counsel:

W.G. Stewart, for the defendant/appellant;

Louis Felix LeBlanc, for the respondent.

This appeal was heard before Bridges, C.J.N.B., Ritchie and Limerick, JJ.A., of the New Brunswick Supreme Court, Appeal Division, who delivered the following decision on May 23, 1968.