Waller v. Gulf Oil Canada Ltd., Servico Ltd., Poulin and Zita, (1980) 33 N.R. 211 (SCC)

• Judge: Martland, Dickson, Estey, McIntyre and Chouinard, JJ.
• Court: Supreme Court (Canada)
• Case Date: March 03, 1980
• Jurisdiction: Canada (Federal)
• Citations: (1980), 33 N.R. 211 (SCC);1980 CanLII 162 (SCC);1980 CanLII 29 (SCC);[1980] SCJ No 18 (QL);[1980] 1 SCR 348;120 DLR (3d) 384;33 NR 211;[1980] 1 SCR 669

Waller v. Gulf Oil Can. Ltd. (1980), 33 N.R. 211 (SCC)

MLB headnote and full text

Poulin v. Gulf Oil Canada Ltd. and Servico Ltd. Waller v. Gulf Oil Canada Ltd., Servico Ltd., Poulin and Zita

Indexed As: Waller v. Gulf Oil Canada Ltd., Servico Ltd., Poulin and Zita

Supreme Court of Canada

Martland, Dickson, Estey, McIntyre and Chouinard, JJ.

March 3, 1980.

Summary:

This case arose out of a claim for damages for personal injuries arising out of a motor vehicle accident against an owner of a car and its driver. The driver was employed at the time by a car wash and was acting in the course of his employment. The insurer of the owner of the car denied coverage to the driver employee based on a policy exclusion respecting persons engaged in the business of servicing cars. The owner's insurer and the insurer of the car wash applied to the Ontario Supreme Court for a determination of the validity of the denial of coverage by the insurer of the owner. The Ontario Supreme Court interpreted the exclusion clause and held that the policy provided coverage for the driver employee. The judgment of the Ontario Supreme Court is set out below - see paragraphs 36 to 61. The owner's insurer appealed to the Ontario Court of Appeal.

The Ontario Court of Appeal allowed the appeal, set aside the judgment of the Ontario Supreme Court and held that the driver employee was not covered by the owner's policy. The judgment of the Ontario Court of Appeal is set out below - see paragraphs 5 to 35. The insurer of the car wash appealed to the Supreme Court of Canada.

The Supreme Court of Canada dismissed the appeal and affirmed the judgment of the Ontario Court of Appeal.

Insurance - Topic 4332

Automobile insurance - Exclusions - Scope of garage personnel exclusion - The plaintiff pedestrian was struck by a car being driven (with the owner's consent) by an employee of a car wash while the employee was acting in the course of his employment - The insurer of the owner of the car denied coverage to the driver employee based on a policy exclusion respecting persons engaged in the business of servicing cars (see paragraph 9) - The Supreme Court of Canada affirmed the Ontario Court of Appeal which held that the driver was not covered by the policy - The Ontario Court of Appeal stated that the word "entitled to indemnity" in the exclusion clause meant entitled to be held harmless and did not mean entitled to compensation or payment (see paragraphs 12 and 28).

Insurance - Topic 4326

Automobile insurance - Exclusions - Effect of inclusion in policy of words not authorized by statute - The Ontario Court of Appeal stated that the inclusion of words (not authorized by statute) in a policy exclusion cannot be relied upon by the insurer as an aid in interpretation (see paragraph 30).

Words and Phrases

Indemnity - The Supreme court of Canada discussed the meaning of the word "indemnity" as found in s. 215(a) of the Ontario Insurance Act, R.S.O. 1970, c. 224.

Cases Noticed:

Canadian General Insurance Company v. State Farm Mutual Automobile Insurance Company, [1957] O.R. 258, refd to. [para. 60].

Statutes Noticed:

Insurance Act, R.S.O. 1970, c. 224, sect. 215 [para. 11]; sect. 239(1) [para. 59].

Authors and Works Noticed:

Couch on Insurance (2d ed. 1965), s. 45.981 [para. 27].

Halsbury's Laws of England, (3d), vol. 18, page 528 [para. 50].

Black's Law Dictionary [para. 51].

Counsel:

Brendan O'Brien, Q.C., for the appellants;

J.W. O'Brien, Q.C., for the respondent.

This appeal was heard by MARTLAND, DICKSON, ESTEY, McINTYRE and CHOUINARD, JJ. of the Supreme Court of Canada at Ottawa, Ontario on February 28, 1980.

The judgment of the Supreme Court of Canada was delivered on March 3, 1980.