Failure to attend mandatory mediations could result in a $40,000 cost penalty.

An appeal from a decision of the trial judge not to award a cost penalty against a party who refused to  attend a mandatory mediation under the Ontario Insurance Act. The appeal was allowed.

Keam v. Caddey, [2010] O.J. No. 3650, August 31, 2010, Ontario Court of Appeal, M. Rosenberg, S.T. Goudge and K.N. Feldman JJ.A.

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An insured who is injured in a motor vehicle accident while driving with a prohibited blood alcohol level may be entitled to first party automobile benefits.

A motion for summary judgment dismissing the Plaintiff’s claim for damages pursuant to uninsured motorist coverage. The defendant’s motion was dismissed.

Matt v. Crawford, [2010] O.J. No. 3622, August 10, 2010, Ontario Superior Court of Justice, A. Mullins J.

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Injuries caused by an assault that occured after a high speed car chase may not be covered by a motor vehicle policy.

An appeal from a decision that injuries sustained by the plaintiff police officer during an arrest following a police chase did not arise from the ownership, use, or operation of a motor vehicle. The appeal was dismissed.

Letkeman v. Ouellette, [2010] A.J. No. 1012, September 13, 2010, Alberta Court of Appeal, C.D. Hunt and C.D. O’Brien JJ.A. and R.P. Belzil J. (ad hoc)

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An insured has the inital onus to prove a loss. Once this has been satisfied the onus then sifts to the insurer to provide a defense.

A claim against ICBC for indemnification pursuant to two policies of insurance for damage to two vehicles. The claim was dismissed.

Hughes v. Insurance Corp. of British Columbia, [2010] B.C.J. No. 1771, September 8, 2010, British Columbia Provincial Court, T.S. Woods Prov. Ct. J.

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A vehicle stolen while rented to a third party but still in possession of the owner may be covered under the owner's insurance policy despite a rental exclusion.

Application by the insured for coverage under an insurance policy issued by Zurich Insurance Company was allowed. The policy insured a Caterpillar D6R owned by the insured, which was stolen from a job site. Although at the time of the loss the property was “on rental”, as that term is intended in the policy, it had not left the custody of the the insured because the insured still had some measure of possession, authority over or responsibility for the safekeeping of the equipment.

Paul First Nation v. Zurich Insurance Co., [2010] A.J. No. 831, July 13, 2010, Alberta Court of Queen’s bench, B.R. Burrows J.

 

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A person using his park truck as a crane may be entitled to compensation for damages under his autombile insurance.

Application by Brent Wormell (Wormell) for a declaration that I.C.B.C. pay him the amount of a judgment obtained against I.C.B.C.’s insured, Bradley Hagen (“Hagen”), was allowed. The loss arose out of the use and operation of Hagen’s motor vehicle. Although the outriggers were extended at the time of the loss, the truck did not cease to be a motor vehicle. Further, the loss was not excluded by virtue of s. 72 of the Insurance (Motor Vehicle) Act. The injury did not arise out of the operation of attached equipment at a site where the attached equipment was being operated.

Wormell v. Insurance Corp of British Columbia, July 21, 2010, British Columbia Supreme Court, L.A. Loo J.

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An insured's abilty to seek contribution and indemnity may be limited by past conduct

The appeal by two insurers from the dismissal of an application to dismiss a third insurer's contribution action was allowed where the Court found that the third insurer had already tried to seek contribution through amendments to an action by the insured pursuant to which the third insurer admitted that the contribution action was statute-barred and, consequently, the doctrine of issue estoppel was operative and the attempt to seek the same remedy through a separate action was found to be an abuse of process.

Insurance Co. of the State of Pennsylvania v. Global Aerospace Inc., [2010] S.J. No. 446, July 30, 2010, Saskatchewan Court of Appeal, S.J. Cameron, J.G. Lane and G.A. Smith JJ.A.

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Full indemnity extinguishes any right for further recovery by an insured or an insurer.

The appeal by two Insurers from a decision allowing Cameco Corp. ("Cameco") to amend its action to pursue a subrogated claim on behalf of a third Insurer was allowed where the third Insurer had already fully indemnified Cameco for the claims covered by the other two policies and, therefore, Cameco was not able to pursue further recovery.

Insurance Co. of the State of Pennsylvania v. Cameco Corp., [2010] S.J. No. 445, July 30, 2010, Saskatchewan Court of Appeal, S.J. Cameron, J.G. Lane and G.A. Smith JJ.A.

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