The applicant insurers applied for judicial review of an Umpire's decision under s. 128(3) of the Insurance Act regarding the value of a loss following a house fire.
The Umpire valued the Actual Cash Value at $338,800, which significantly exceeded both the insured's appraisal of $210,000 and the insurer's appraisal of $185,000.
The Divisional Court found the Umpire's decision unreasonable as it exceeded the range of possible acceptable outcomes and lacked reasons to justify the departure from the policy provisions.
The decision was set aside and the matter remitted to a new Umpire.
