An Extra-provincial Insurer has no Right to bring a Subrogated Claim to Recover Amounts Paid

An extra provincial insurer has no express statutory right of subrogation under the Insurance (Vehicle) Act and cannot bring a subrogated claim to recover the amounts it paid to its insureds in respect of a motor vehicle accident occurring in British Columbia.

Middleton v. Heerlein, [2015] B.C.J. No. 1524, July 17, 2015, British Columbia Supreme Court, R. Johnston J.

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The Standard of Review for an Umpire's Decision is "Patently Unreasonable"

Judicial review of an umpire's decision made pursuant to section 12 of the Insurance Act, R.S.B.C. 2012, c.1, regarding the value of stolen jewellery The standard of review was whether the umpire's decision was patently unreasonable. The petitioners (insureds) failed to identify a reversible error and the petition for judicial review was dismissed.

Vandale v. Wawanesa Mutual Insurance Co., [2015] B.C.J. No. 942, May 11, 2015, British Columbia Supreme Court, P. Rogers J.

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Insurer does not have Duty to Defend Negligent Acts Occuring within Policy Period After Policy Expires

The Court found on a special case under Rule 9-3 that the insurer did not have a duty to defend the insureds with respect to claims for negligent acts occurring within the policy period when the resulting damage (i.e., a landslide) occurred several months after the policy expired.

Canadian Northern Shield Insurance Co. v. Intact Insurance Co., [2015] B.C.J. No. 943, May 11, 2015, British Columbia Supreme Court, B. Fisher J.

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An insurer is responsible for pre-tender defence costs

An insurer is responsible for pre-tender defence costs absent an identifiable prejudice arising from the late notice of the claim.

Lloyd's Underwriters v. Blue Mountain Log Sales Ltd., [2015] B.C.J. No. 783, April 22, 2015, British Columbia Supreme Court, T.M. McEwan J.

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Freezing and Expansion Exclusion Clause Operated to Exclude Liability For Damage Caused by Earth Movement

Coverage under an all risk policy of property insurance for damage caused by ground movement and expansion, cracking, and shifting of the insured building which resulted from freezing of leaking water was excluded by exclusions for damage caused directly or indirectly by expansion and freezing, but not by an exclusion for damage caused by earth movement.

Wynward Insurance Group v. MS Developments Inc., [2015] B.C.J. No. 561, March 4, 2015, British Columbia Supreme Court, P. Rogers J.

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Application by the insurer for a dismissal of the plaintiffs' action on the basis the disputes were resolved by a binding settlement agreements. The court found the settlement agreements were binding and dismissed the plaintiffs' action. There was no evidence that the plaintiffs were subject to undue influence or that they were not mentally competent when they signed the settlement agreements. Further, the settlement agreements were not unconscionable.

Palaniuk v. Royal & Sun Alliance Insurance Co. of Canada, [2014] B.C.J. No. 2539, October 10, 2014, British Columbia Supreme Court, P. Rogers J.

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The insured’s application for long-term disability benefits was denied by the adjuster for five months after the time of her claim. The insured alleges that in denying her claim, the adjuster and the insurer did not act in good faith. The Court refused to summarily dismiss the insured’s claim against the insurer and adjuster for breach of contract and the duty of fairness and good faith; however, the insured’s claims against the adjuster for inducement of breach of contract and interference with contractual relations were dismissed.

Frank v. Kalokina, [2014] B.C.J. No. 2496, September 17, 2014, British Columbia Supreme Court, R.A.M. Baird J.

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A clause excluding coverage for damage arising out of the operation of attached equipment did not apply where the equipment was in use but not being directly controlled at the time of the accident.

Dadey v. Insurance Corp. of British Columbia, [2014] B.C.J. No. 2118, August 15, 2014, British Columbia Supreme Court, R.W. Jenkins J.

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Appeal of the dismissal of the insured's appeal from a master's order compelling him to undergo an independent medical examination. The Court of Appeal found no error in the reasons of the chambers judge. The order under appeal required the court to exercise its discretion and absent the finding that it was clearly wrong, the exercise of discretion was entitled to deference. Accordingly, the appeal was dismissed.

Wright v. Sun Life Assurance Co. of Canada [2014] B.C.J. No. 1982, July 30, 2014, British Columbia Court of Appeal, E.A. Bennett, D.C. Harris and R. Goepel JJ.A.

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Summary trial application by the insurer for an order that the bank's claim under a standard mortgage clause be dismissed because the bank failed to comply with the applicable limitation period. The court dismissed the insurer's application and granted leave to bring a further summary trial application after there had been document production and examinations for discovery. The court found that evidence on why the insurer did not pay the bank was required in order to make a determination of the issues.

Royal Bank of Canada v. Canadian Northern Shield Insurance Co. [2014] B.C.J. No. 1974, July 28, 2014, British Columbia Supreme Court, W.J. Harris J.

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