The appellant appealed a decision of the Quebec Court of Appeal regarding whether art. 2474 of the Civil Code of Québec precludes the conventional subrogation of an insurer to the rights of a hypothecary creditor against its debtor.
The Supreme Court of Canada dismissed the appeal, holding that the subrogation was obtained pursuant to a separate hypothecary clause, meaning the debtor could not be considered the insured under that separate contract.
The Court noted that issues relating to intentional fault and the right to reimbursement must be determined at trial.
