An insurer appealed a summary judgment decision that permitted insureds to retain insurance payments in excess of their actual loss.
The insurer paid $1,030,187.04 to the insureds following a fire loss, but an appraisal determined the total payable amount was $926,677.03, resulting in an overpayment of $103,510.01.
The motion judge held that the insureds could retain the excess funds based on an email communication from the insurer's representative.
The Court of Appeal reversed, holding that a contract of insurance is a contract of indemnity and cannot be used to turn misadventure into profit.
The court found the motion judge made a palpable and overriding error of fact in interpreting the email and committed extricable legal errors in analyzing both the insurance policy and the Insurance Act.