The respondent's commercial building was destroyed by fire.
The appellant insurer admitted liability for equipment and stock and paid those amounts into court, but no agreement was reached regarding the building.
The insurer offered to settle the building claim 'without prejudice' to its liability.
The respondent did not reply and commenced an action after the one-year limitation period expired.
The Supreme Court of Canada held that the insurer's admission of liability did not amount to a promise not to rely on the limitation period, and therefore promissory estoppel did not apply.
The appeal was allowed and the action dismissed.
