This appeal arose from a priority dispute between insurance companies concerning accident benefits coverage following a motor vehicle accident.
The appellant, Trafalgar Insurance Company, appealed an arbitration decision that found the injured party was not insured by Economical Insurance Company and not entitled to Statutory Accident Benefits from them.
The Superior Court dismissed the appeal, upholding the arbitrator's findings that the vehicle in question was not an 'owned automobile' under Economical's standard Ontario Garage Policy (OAP 4) because its use (leased to a rental company) was outside the scope of the insured's business and was specifically excluded by the policy.
The court also affirmed that section 233(2) of the Insurance Act did not apply as the issue was the vehicle's insured status, not a breach of contract or misrepresentation.
