Van Berlo v. Aim Underwriting Limited et al.

[Indexed as: Van Berlo v. Aim Underwriting Ltd.]

Ontario Reports
Ontario Superior Court of Justice,
Mitrow J.
August 19, 2014

122 O.R. (3d) 315 | 2014 ONSC 4648

Case Summary

Insurance — Interpretation and construction — "Accident" — Plaintiff knowing from experience that his two-engine plane could safely fly on one engine — Plaintiff deciding to take off and fly six-minute flight from airport to his home with only one functioning engine — Plane crashing during takeoff — Incident being unlooked-for mishap or occurrence and falling within definition of "accident" in policy — Plaintiff's decision to attempt single-engine takeoff negligent but not rising to level of recklessness such that occurrence was no longer "accident".

The plaintiff was an experienced flyer. When one of the engines of his two-engine plane did not start, he decided to fly the six-minute flight from the airport to his home on one functioning engine. The plane crashed during takeoff. The defendant insurer denied the plaintiff coverage under the insurance policy on the basis that the occurrence was not an "accident". The plaintiff sued. [page316]

Held, the action should be allowed.

The plaintiff believed that a one-engine takeoff could be safely accomplished. He knew from experience that his plane could fly on one engine and the flight home was very short. The incident amounted to an accident -- it was an unlooked-for mishap or occurrence. While the plaintiff's decision to attempt a single-engine takeoff was foolish and negligent, it could not be said that he realized the danger of his actions and deliberately assumed the risk. Nor could it be said that his conduct rose to a level of reckless or culpability such that it was no longer an accident.

The plaintiff was not in breach of the aircraft protection condition in the policy, which obligated him to minimize the loss once the risk had materialized.

Canadian Indemnity Co. v. Walkem Machinery & Equipment Ltd., 1975 141 (SCC), [1976] 1 S.C.R. 309, [1975] S.C.J. No. 34, 53 D.L.R. (3d) 1, 3 N.R. 523, [1975] 5 W.W.R. 510, [1975] I.L.R. Â1-654 at 1100, affg 1973 1322 (BC CA), [1973] B.C.J. No. 838, 38 D.L.R. (3d) 265 (C.A.), affg 1970 1186 (BC SC), [1970] B.C.J. No. 436, 74 W.W.R. 228, [1970] I.L.R. Â1-344 at 982 (S.C.); Co-operative Fire & Casualty Co. v. Saindon, 1975 180 (SCC), [1976] 1 S.C.R. 735, [1975] S.C.J. No. 52, 56 D.L.R. (3d) 556, 4 N.R. 343, 10 N.B.R. (2d) 329, [1975] I.L.R. Â1-669 at 1152, affg 1973 1214 (NB CA), [1973] N.B.J. No. 132, 44 D.L.R. (3d) 469, 7 N.B.R. (2d) 280, [1974] I.L.R. Â1-597 at 862 (C.A.), revg 1973 1738 (NB SC), [1973] N.B.J. No. 133, 7 N.B.R. (2d) 285 (Q.B.); Co-operators Life Insurance Co. v. Gibbens, [2009] 3 S.C.R. 605, [2009] S.C.J. No. 59, 2009 SCC 59, 99 B.C.L.R. (4th) 1, 396 N.R. 165, 79 C.C.L.I. (4th) 1, J.E. 2010-1, 2010EXP-5, 313 D.L.R. (4th) 513, [2010] 1 W.W.R. 575, [2010] I.L.R. I-4928, 278 B.C.A.C. 283; Marshall Wells of Canada Ltd. v. Winnipeg Supply and Fuel Co., 1964 774 (MB CA), [1964] M.J. No. 24, 49 W.W.R. 664, [1964] CarswellMan 44 (C.A.); Stats v. Mutual of Omaha Insurance Co., 1978 38 (SCC), [1978] 2 S.C.R. 1153, [1978] S.C.J. No. 56, 87 D.L.R. (3d) 169, 22 N.R. 91, [1978] I.L.R. Â1-1014 at 1188, [1978] 2 A.C.W.S. 393, affg (1976), 1976 50 (ON CA), 14 O.R. (2d) 233, [1976] O.J. No. 2309, 73 D.L.R. (3d) 324, [1976] I.L.R. Â1-816 at 367, 1976 CarswellOnt 534 (C.A.), revg (1975), 1975 426 (ON SC), 6 O.R. (2d) 734, [1975] O.J. No. 2192, 54 D.L.R. (3d) 29, [1975] I.L.R. Â1-655 at 1104 (H.C.J.), consd

Other cases referred to

Candler v. London & Lancashire Guarantee & Accident Co. of Canada, 1963 155 (ON SC), [1963] 2 O.R. 547, [1963] O.J. No. 763, 40 D.L.R. (2d) 408, [1963] I.L.R. Â1-110 at 537 (H.C.J.); Martin v. American International Assurance Life Co., [2003] 1 S.C.R. 158, [2003] S.C.J. No. 14, 2003 SCC 16, 223 D.L.R. (4th) 1, 301 N.R. 127, [2003] 6 W.W.R. 1, J.E. 2003-600, 12 B.C.L.R. (4th) 201, 48 C.C.L.I. (3d) 1, [2003] I.L.R. I-4171, 120 A.C.W.S. (3d) 869; Non-Marine Underwriters, Lloyd's of London v. Scalera, [2000] 1 S.C.R. 551, [2000] S.C.J. No. 26, 2000 SCC 24, 185 D.L.R. (4th) 1, 253 N.R. 1, [2000] 5 W.W.R. 465, J.E. 2000-935, 135 B.C.A.C. 161, 75 B.C.L.R. (3d) 1, 18 C.C.L.I. (3d) 1, 50 C.C.L.T. (2d) 1, [2000] I.L.R.I-3810, 96 A.C.W.S. (3d) 479; Progressive Homes Ltd. v. Lombard General Insurance Co. of Canada, [2010] 2 S.C.R. 245, [2010] S.C.J. No. 33, 2010 SCC 33, 293 B.C.A.C. 1, [2010] I.L.R. I-5051, 406 N.R. 182, 323 D.L.R. (4th) 513, 9 B.C.L.R. (5th) 1, EYB 2010-179515, 93 C.L.R. (3d) 1, 2010EXP-3049, J.E. 2010-1683, [2010] 10 W.W.R. 573, 73 B.L.R. (4th) 163, 89 C.C.L.I. (4th) 161; R. v. Khelawon, [2006] 2 S.C.R. 787, [2006] S.C.J. No. 57, 2006 SCC 57, 274 D.L.R. (4th) 385, 355 N.R. 267, J.E. 2007-28, 220 O.A.C. 338, 215 C.C.C. (3d) 161, 42 C.R. (6th) 1, EYB2006-111773, 71 W.C.B. (2d) 498; Van Berlo v. Aim Underwriting Ltd., [2013] O.J. No. 4366, 2013 ONCA 582, 25 C.C.L.I. (5th) 212, 234 A.C.W.S. (3d) 736 [page317]

Statutes referred to

Aeronautics Act, R.S.C. 1985, c. A-2, s. 7.7

Rules and regulations referred to

Canadian Aviation Regulations, SOR/96-433, s. 602.01

ACTION for recovery under an insurance policy.

Douglas G. Gunn, Q.C., and B. Thomas Granger, Q.C., for plaintiff.

Timothy Trembley, for defendants.

MITROW J.: —

(Full judgment continues exactly as provided in the source text.)