The insured was seriously injured in a motorcycle accident in Florida.
Her travel insurer paid her medical expenses and sought to assert a subrogated claim against the insurer of the at-fault driver.
The application judge held that the travel insurer had no right of subrogation because its policy had to conform to the Ontario Insurance Act, which bars subrogation for health care expenses.
On appeal, the Court of Appeal affirmed the decision, holding that Ontario contract law, not Florida tort law, governed the subrogation right.
The Court also applied the Fraser River principled exception to privity of contract, allowing the at-fault driver's insurer to benefit from the statutory waiver of subrogation.
