An Insurer for a car wholesaler appealed a chambers judge’s ruling that it was to provide first loss coverage in regards to an accident involving a vehicle for sale by consignment that was damaged when it was being testdriven while in the possesion of the car dealer. The insurer for the wholesaler argued that the dealer's insurer should have been responsible for the loss. The Chambers judge determined that the wholesaler was an owner pursuant to s. 650 of the Insurance Act and determined that the wholesaler's insurer was responsible.
The Court of Appeal found that the chambers judge made no error in concluding that s. 650 of the Insurance Act applied, and therefore dismissed the appeal.
Here is the citation: Federated Insurance Co. of Canada v. ING Insurance Co. of Canada  A.J. No. 762. Alberta Court of Appeal. C. Hunt, E. Picard and P. Martin JJ.A. July 11, 2007.
Here is a link to the decision.
This case was originally digested by Sarah Swan and edited by David Pilley.