Lianne Furlong

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.

The plaintiff sued the appellant in negligence following a motor vehicle accident.

The appellant was driving the plaintiff's car with permission and was an insured under the plaintiff's automobile insurance policy.

The insurer settled the plaintiff's claims without the appellant's consent and obtained summary judgment against the appellant for reimbursement under s. 258 of the Insurance Act.

On appeal, the Court of Appeal held that absent an agreement to the contrary, s. 258(1) requires a judgment against the insured before an insurer can access available insurance moneys or seek reimbursement.

The appeal was allowed and the summary judgment was set aside.