The defendants were involved in a motor vehicle accident while driving a 'loaner' vehicle provided by a dealership while their own vehicle was being repaired.
The defendants' personal insurer and the dealership's garage insurer disputed which policy should respond in priority.
The court found that the loaner vehicle was not a 'leased' vehicle under the Insurance Act, but rather a temporary substitute vehicle.
The court held that the dealership's garage policy was an owner's policy and therefore stood as first loss insurance.
The motion for summary judgment was granted, requiring the garage insurer to defend and indemnify the defendants.
