Last week’s Court Rulings from the Alberta Court of King’s Bench, Court of Appeal and SCC.
Edited by Amanda Kostek and Christie Dewar
Nova-Eco Properties Ltd v Programmed Insurance Brokers Inc, 2023 ABCA 349
Flood Endorsement | Renewal
In 2020 the Plaintiff suffered a flood, and sought recovery against their policy. However, in November, 2019 the Plaintiff’s broker was advised that the flood endorsement would not be renewed, but could be added back on payment of a premium of $32,605 with a $50,000 deductible. That was never communicated to the Plaintiff by the broker, and the policy was renewed without the flood endorsement. The Plaintiff sued both the broker and Insurer following the flood loss. At a special chambers hearing the Plaintiff’s claim against the insurer was dismissed, and the broker was found liable for damages arising out of the lack of flood endorsement. The Broker appealed submitting that the Insurer should also be liable to the Plaintiff because the Broker was an agent of both the Plaintiff and Insurer at the time. The Court of Appeal dismissed the appeal on the basis that there was no reviewable error of the chambers judge in concluding that at the time the Broker was acting as the Plaintiff’s agent.