[1] This endorsement deals with the cost consequences of my decision of November 2, 2015 [2015 ONSC 6723].
[2] Gordon Fitt sneaked the family car out of the matrimonial home and then crashed it on the highway, killing Andrew Passero and injuring his passenger, Scott Heron, and Fitt’s own passenger, Dodie Barker. Fitt and his wife had each insured the vehicle for $1,000,000 liability with separate insurers. Fitt pleaded guilty to dangerous driving and went to prison.
a. Gordon Fitt and Deanna Stafford were both owners of the motor vehicle driven by Gordon in the accident;
b. Since they were both owners, Deanna is liable whether or not she consented to Gordon’s possession of the vehicle at the time; and
c. Their respective insurers were liable for $1,000,000 each, not $1,000,000 between them.
[4] The first two questions required the application of settled law to agreed facts. Fitt’s and Stafford’s insurers, Intact and State Farm, should not have denied coverage. Ownership could not seriously be contested by either Fitt or Stafford in the circumstances. State Farm and Intact, however, were justified in contesting the extent of their liability. They had an arguable point about the interpretation and application of s.277 of the Insurance Act. But they were unsuccessful.
[5] The successful side was led by the Passero plaintiffs and their insurer, Axa Canada. Their success was shared by the Heron plaintiffs and their insurer (Cooperators) and the Barker plaintiffs and their insurer (Gore Mutual). Gordon Fitt was also successful on the third question. His insurer was held to be liable for all of the $1,000,000 coverage he bought.
https://www.canlii.org/en/on/onsc/doc/2015/2015onsc7195/2015onsc7195.html