The respondent, an 80-year-old woman, slipped and fell on an icy municipal sidewalk after disembarking from a city transit bus.
She sued the appellant city in both negligence and breach of contract.
The trial judge found the negligence claims statute-barred but allowed the contract claim, holding that section 266 of the Insurance Act did not preclude it.
On appeal, the Divisional Court held that while section 266 does not automatically foreclose genuine actions in contract where a motor vehicle is merely incidental, the respondent's claim was essentially a disguised negligence claim.
As there was no independent contractual obligation imposing liability, the action was statute-barred and the appeal was allowed.