Ramon V. Andal

The applicants obtained a judgment against a moving company after their belongings were stolen from a trailer parked on the street.

When the judgment went unsatisfied, they brought an application under s. 132 of the Insurance Act against the moving company's insurers.

The application judge found that the loss fell under the $1 million warehouse insurance limit rather than the $500,000 transportation insurance limit.

The Court of Appeal allowed the primary insurer's appeal in part, holding that the breach was a failure to deliver under the transportation contract, so the $500,000 transportation limit applied.

However, the Court upheld the application judge's finding that the insurer was liable for post-judgment interest and costs exceeding the policy limit.

The appellant air carrier appealed a trial judgment awarding the respondent damages for spoiled vaccine cargo.

The vaccine was destroyed after the carrier failed to refrigerate it during a delay in transit, despite clear instructions.

The Court of Appeal upheld the trial judge's finding that the carrier's failure to explain the lack of refrigeration, combined with the clear instructions and availability of coolers, supported an adverse inference of recklessness and knowledge of probable damage.

Consequently, the carrier was not entitled to limit its liability under the Warsaw Convention.