In this case, a homeowner ("Johnson") brought an action against his insurer ("AXA").
Following a fire at his house, AXA denied coverage for a fire loss because it alleged Johnson failed to disclose the presence of a massage parlor in his basement suite and, further, that Johnson himself had started the fire.
The court held that Johnson had made a material misrepresentation in the application for insurance and had committed arson with respect to the fire loss at issue, and upheld the denial of coverage.
In doing so, the court reaffirmed that morally blameworthy civil conduct, such as arson, need only be proved on a balance of probabilities.
Johnson v. AXA Pacific Insurance Co.,  B.C.J. No. 414, March 14, 2011, British Columbia Supreme Court, T.C. Armstrong J.Continue Reading...