The appellant's parked vehicle was struck by the respondent's vehicle.
The respondent signed a handwritten agreement accepting fault and promising to pay up to $15,000 for the damages, minus any insurance payout.
After receiving $6,500 from his insurer, the appellant sued the respondent for the remaining $8,500.
The Small Claims Court dismissed the action, finding no consideration and that the claim was barred by section 263 of the Insurance Act.
On appeal, the Divisional Court reversed the decision, holding that the appellant's agreement to cap his claim at $15,000 constituted valid consideration, and that the action was permitted under the contract exception in section 263(5)(a.1) of the Insurance Act.