Pierre Morin

The appellant, a service member, was disabled by the negligence of an employee of a military hospital.

The Supreme Court of Canada allowed the appeal, agreeing with the dissenting judge in the Federal Court of Appeal that the link between the damage and the appellant's status as a serviceman was too tenuous to be considered directly connected to his military service.

The Court directed the respondent to pay the appellant $120,975 in damages, plus interest and additional indemnity.

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.