The appellant driver was sued for negligence following a motor vehicle accident while driving the plaintiff's car.
The plaintiff's insurer, added as a third party, settled the plaintiff's claims without the appellant's consent and obtained a consent judgment against itself, but not against the appellant.
The insurer then successfully moved for summary judgment against the appellant for reimbursement of the settlement monies under section 258 of the Insurance Act.
On appeal, the Court of Appeal set aside the summary judgment, holding that absent an agreement between the insurer and the insured, the insurer cannot seek reimbursement under section 258(1) without first recovering a judgment against the insured.