The appellant insurer paid the maximum amount of its policy ($35,000) plus legal interest and costs following a judgment against its insured for a motor vehicle accident.
The insurer refused to pay the additional indemnity awarded under the second paragraph of article 1056c of the Civil Code, arguing its contract only required payment of 'interest'.
The respondent brought a garnishment proceeding against the insurer.
The Supreme Court of Canada dismissed the insurer's appeal, holding that the additional indemnity under article 1056c is of the same nature as the interest mentioned in the first paragraph (damages for delay) and is therefore included in the interest the insurer undertook to pay under the policy.
