The insured struck a pedestrian in a strip mall parking lot while driving alone, contrary to her G1 licence conditions.
She pleaded guilty to Highway Traffic Act offences.
Her insurer denied coverage, arguing she was not 'authorized by law' to drive under Statutory Condition 4(1).
The Court of Appeal held that the guilty pleas did not create issue estoppel in the civil action due to the minor stakes of the traffic tickets compared to the civil suit.
Furthermore, the parking lot was not a 'highway' under the Highway Traffic Act, meaning the graduated licensing restrictions did not apply at the time of the accident.
The insurer was ordered to defend and indemnify the insured.