Charlia von Buchwald

The Minister of Finance appealed an arbitrator's decision that an Elite Insurance policy was not in force at the time of a motor vehicle accident, despite Elite's invalid non-renewal notice.

The arbitrator had found the policy automatically renewed for only a six-month term due to mutual intent to end the contractual relationship.

The Superior Court found the arbitrator's decision unreasonable, holding that Section 236(5) of the Insurance Act clearly displaces common law principles of contract renewal, meaning the policy remained in force until Elite properly discharged its statutory notice obligations.

The Minister's appeal was allowed, and Elite's cross-appeal regarding the invalidity of its non-renewal notice was dismissed.

State Farm paid statutory accident benefits to its insured motorcyclist who was injured after swerving to avoid a left-turning vehicle insured by Aviva.

State Farm sought indemnification from Aviva under the loss transfer provisions of the Insurance Act.

The arbitrator found the Aviva-insured driver 100% at fault under rule 5(1) of the Fault Determination Rules, concluding that 'ordinary rules of law' does not mean pure tort law and must be informed by Rule 3.

The application judge set aside the award and apportioned fault 50/50 based on tort law.

The Court of Appeal allowed the appeal and restored the arbitrator's award, holding that rule 5(1) does not require a pure tort law analysis and that Rule 3 applies to all fault determinations under the Rules.