Welcome Companies Consumer Information Consumer Survey
Claim Experiences Press Releases Speakers' Corner Related Links Home
..... Below is the judgement and written reasons in a case in which an insurance company, Commercial Union, claimed that their policy contained an exemption which allowed CU to refuse to pay the claim. The position of the insured and their broker was that the policy did not proivide such an exemption.
..... The tremendous costs in time, money and emotional stress make it very difficult to defend a rightfull claim against an intransigent insurance company. Consumers should consider if they would have the resources and necessity to defend their rights if they had to make a claim on their chosen insurance company following a disaster.
.....This is one of the techniques being used by CU to minimize the claim payout following a fire at 25 Salem Ave., Toronto, Canada. CU has taken the position that there are exemptions to the Guaranteed Replacement Option of their homeowners policy which limit full replacement. The insured and their agent disagree.BR>
Counsel for the Appellant Commercial Union Assurance Co. PLC
William M. Holburn, Q.C. and T.R. Davies
Murray M. Blok
Counsel for the Respondent Catherwood Towing Ltd.
Eric A. Dolden
Counsel for the Respondent Sedgwick Limited
Place and Date of Hearing:
Vancouver, British Columbia June 20, 1996
Place and Date of Judgment:
Vancouver, British Columbia July 17, 1996
Written Reasons by:
The Honourable Mr. Justice Goldie
Concurred in by:
The Honourable Mr. Justice Carrothers
The Honourable Madam Justice Prowse
Court of Appeal for British Columbia
CATHERWOOD TOWING LTD.
v.
COMMERCIAL UNION ASSURANCE CO. PLC.
and:
SEDGWICK LIMITED
Reasons for Judgment of Mr. Justice Goldie:
1 The defendant below, Commercial Union Assurance Co. PLC (to which I will refer as the "Insurer") appeals from a judgment of the Supreme Court of British Columbia pronounced 30 January 1995 by Mr. Justice Sigurdson after a summary trial. The declaration sought and obtained by the respondent Catherwood Towing Ltd. ("Catherwood" or the "Insured") was, as set out in the entered order;
THIS COURT ORDERS and declares that Protection and Indemnity Insurance Policy number 92/2045 provides insurance coverage to the Plaintiff, its master, Robert Peters, and the tug "Sea Imp VIII" in respect of the claim by Meeker Log & Timber Ltd. and Meeker Ceder (sic) Products (1967) Ltd. in connection with loss and damage to cedar blocks that are the subject matter of Action No. C931756, Vancouver Registry;
2 The Insurer contends the coverage in question was excluded. The Insured and the respondent Sedgwick Limited (the "Broker") say coverage was provided by an endorsement to the policy. The issue is to be determined by the true construction of the policy, as endorsed.
Facts
3 On 16 November 1992 the Insured's tug, Sea Imp VIII, had in tow a laden dumb barge. The barge took ground with resulting damage to barge and cargo. As owners of the barge and cargo Meeker Log and Timber Ltd. and Meeker Cedar Products (1967) Ltd. (collectively "Meeker") sued the Insured, the vessel Sea Imp VIII and its master. Catherwood claimed indemnity under the protection and indemnity policy 92/2045 issued by the Insurer. The Insurer admitted coverage for damage to the barge and to a loader aboard the barge. Coverage was denied for the cargo of cedar blocks claimed to be worth in excess of $300,000.
The Policy provisions
4 The Insured relied on the following endorsement:
TOWER'S LIABILITY
In consideration of an additional premium of $ INCLUDED it is understood and agreed that if the vessel hereby insured shall cause her tow to come into collision with any other vessel, craft or structure and/or any other object, floating or otherwise or shall cause any other loss or damage to her tow or the freight thereof or to the property on board, and the Assured in consequence of his undertaking shall become liable to pay and shall pay by way of damages to any other person or persons any sum or sums in respect of any one such casualty, Underwriters shall indemnity the Assured for such. In cases where the liability of the vessel has been contested or proceedings have been taken to limit liability with the consent of the Underwriters, Underwriters will also pay the costs, which the Assured shall thereby incur or be compelled to pay; but when both vessels are to blame, then, unless the liability of the owners of one or both of such vessels becomes limited by law, claims under this clause shall be settled on the principle of cross liabilities as if the owners of each vessel had been compelled to pay to the owners of the other of such vessels such one half or other proportion of the latters' damage as may have been properly allowed in ascertaining the balance or sum payable by or to the Assured in consequence of such casualty. It is further agreed that the principles involved in this clause shall apply to the case where two or more of the vessels involved are the property, in part or in whole, of the same owners, all questions of responsibility and amount of liability between such vessels being left to the decision of a single arbitrator, if the parties can agree upon a single arbitrator, or failing such agreement to the decision of arbitrators, one to be appointed by the Assured and one to be appointed by Underwriters, the two arbitrators so chosen to choose a third arbitrator before entering upon the reference, and the decision of such single or of any two of such three arbitrators, appointed as above to be final and binding. Provided always that the liability of the Underwriters to indemnify the Assured pursuant to this clause is subject to the insuring conditions and the limit of liability of the policy.
Help others to make an informed decision
.....If you are interested in sharing your claims experience with others take the time to add your story concerning an insurance company, adjuster or contractor to our Speakers' Corner or Consumer Survey. In the past this individual experience has been unavailable with a few exceptions, other than as part of a statistic on consumer satisfaction. Become more than a statistic by sharing your experience with others.
Welcome Companies Consumer Information Consumer Survey
Claim Experiences Press Releases Speakers' Corner Related Links Home
Commercial Union ( CGNU Group ) Consumers'
Forum
c/o B.Shuttleworth
P.O.Box 235
Postal Station E
772 Dovercourt Rd.
Toronto, Ontario
Canada, M6H 2V0
brefni@cuconsumers.org
copyright © 1997-1999 by Brefni Shuttleworth