The plaintiffs were injured in a motor vehicle accident in California and settled with the at-fault driver for the policy limits.
They then sued their own insurer in Ontario under the OPCF 44 Family Protection Coverage endorsement for their excess losses.
The insurer argued that Ontario's no-fault provisions (ss. 267.1 and 267.2 of the Insurance Act) applied to limit the claim, characterizing them as issues of 'quantum' under the policy.
The Court of Appeal held that the statutory provisions relate to 'liability', not 'quantum', and therefore the substantive law of California governed the liability issues.
The insurer's appeal was dismissed.
