INSURANCE ON CAR

Dominion, Volume 25, Issue 169, 13 April 1932, Page 11

INSURANCE ON CAR

Liability for Damages APPEAL COURT DECISION A motion by Wright, Stephenson and Co., Ltd., and others for judgment against Harry Holmes in an action on au insurance policy over a motorcar was dealt with by the Court of Appeal yesterday. In delivering Hie judgment of the court in favour of defendant, Air. Justice AiacGregor said : “In the present ease Hie policy sued on is in its essence a contract to repair a chattel if damaged. The parties have not provided for the event of the chattel being totally destroyed after damage occurs but before repair becomes possible. What, then would be fair and reasonable in those circumstances? Is it not more fair and reasonable to imply a condition to treat the contract as at an end rather than io compel the contractor Io pay damages for (lie breach of a contract whirl) lie could not possibly perform and on very doubtful evidence ns to Its real extent? In the result it appears to us that io award damages to the plaintiff here for breach of the underwriters’ contract to repair would savour rather of profit than of Indemnity.”