Rachel Runge

CUMIS General Insurance Company appealed a trial judgment finding that an unlicensed driver operated the respondent's vehicle without consent, either express or implied.

CUMIS argued the trial judge made palpable and overriding errors in her factual findings and failed to establish the tort of negligent entrustment.

The appellate court rejected all of CUMIS's arguments, finding no palpable and overriding errors in the trial judge's credibility assessments and factual conclusions.

The court also held that even if negligent entrustment exists in Ontario, it could not be established given the finding of no implied consent.

The appeal was dismissed with costs awarded to the respondent.

In the first phase of a bifurcated trial, the court addressed whether a 16-year-old G1 driver, Nihad Ismail, had his father Sherif's express or implied consent to operate his vehicle, and whether Sherif Ismail negligently entrusted the vehicle to Nihad.

Nihad was involved in a motor vehicle accident while driving his father's car without permission.

The court found no evidence of express or implied consent, noting Nihad's subjective belief that he lacked permission and the absence of prior unauthorized use known to the father.

The court also dismissed the claim of negligent entrustment, finding that the element of "entrustment" was not established as there was no direct giving of the chattel from owner to operator.

Consequently, Sherif Ismail was not held vicariously liable under the Highway Traffic Act.