David A. Scott

Manitoba Public Insurance (MPI) brought a motion for directions regarding an unpaid costs award of $12,000 from a priority dispute over accident benefits.

MPI was successful in the underlying arbitration and application, but took no part in the subsequent appeal between Allstate and the Motor Vehicle Accident Claims Fund.

The Court of Appeal ordered Allstate, as the unsuccessful party on the appeal, to pay MPI's $12,000 costs from the lower proceedings, plus $1,000 for the costs of the motion.

The appellant insurer appealed a motion judge's decision finding that the respondents' newly acquired vehicle was insured as an 'additional automobile' under the Standard Ontario Automobile Policy.

On appeal, the parties agreed to a new fact that the respondent owned another operable vehicle that was not insured by any company.

The Court of Appeal held that the plain wording of section 2.2.1 requires the owner to insure all owned automobiles with the same insurer to trigger the automatic 14-day coverage for an additional vehicle.

Because the respondent owned an uninsured operable vehicle, the precondition was not met.

The appeal was allowed and the insurer was not required to defend or indemnify the respondents.

The appellant sold a surplus grain terminal to a purchaser with an agreement intended to include a restrictive covenant preventing the property's use for grain handling.

The property was later sold in a tax sale to a new purchaser who intended to use it for grain handling.

The appellant sued for a declaration that the restrictive covenant ran with the land and sought rectification of the original agreement if the covenant was found defective.

The motion judge struck out the rectification claim as disclosing no reasonable cause of action and declared the covenant did not survive the tax sale.

The Court of Appeal allowed the appeal, finding that it was not plain and obvious that the rectification claim could not succeed, and set aside the declaratory orders.