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Appeal dismissed; fire caused by motor vehicle use fell within insurance policy exclusion clause.
The appellant appealed an order finding that the cause of a fire was directly related to the use of a motor vehicle and therefore fell within the exclusion clause of the insurance policy.
The Court of Appeal agreed with the motions judge, rejecting the appellant's argument that there was an independent non-automobile related cause.
The appeal was dismissed with costs fixed at $10,000.
Insurer is absolutely liable to innocent third parties under s. 258(1) despite insured's intentional criminal act.
The appellant insurer appealed an order holding it responsible for the first $200,000 of damages payable to the plaintiffs, who were intentionally struck and injured by the insured's vehicle.
The insurer argued it was not obliged to indemnify the insured due to his intentional criminal act under s. 118 of the Insurance Act.
The Court of Appeal dismissed the appeal, holding that ss. 258(1) and (4) of the Act create an absolute liability on the part of the insurer toward innocent third parties, which is not dependent on the insured's right to indemnity.
