The insurer appealed from a ruling in an action brought under s. 132(1) of the Insurance Act after the respondents obtained a negligence judgment against the insured and execution was returned unsatisfied.
The Court of Appeal held that the statutory cause of action permits recovery of the amount of the judgment, up to the face value of the policy, subject only to the same equities the insurer would have against its insured.
The insurer could not relitigate the insured's liability or the respondents' damages, nor could it allege that the original judgment was vitiated by the respondents' own fraud.
The appeal was dismissed with costs.
