BOILER INSPECTION & INSURANCE COMPANY OF CANADA v. SHERWIN-WILLIAMS COMPANY OF CANADA, LTD.
[1951] 1 Lloyd's Rep. 91
JUDICIAL COMMITTEE OFTHE PRIVY COUNCIL.
Before Lord Porter, Lord Merriman, Lord Reid, Lord Radcliffe and Lord Tucker.
Insurance - Explosion - "Loss from an accident as herein defined"-Damage by explosion and fire - Exclusion of fire-Cause of loss-Full claim met by arrangement with fire companies - Right of assured to sue under accident policy - "Signification" - Whether assured had interest in proceedings - Concurrent insurance with fire companies against damage by explosion- Explosion in "pressure containers" excepted-Insurance policy issued by defendants covering plaintiffs against
loss (. . . including loss of the kind described in Sect. IV) from an accident as herein defined to an object described herein.
Agreement by defendant insurers
Sect. I. To pay the assured for loss on the property of the assured directly damaged by such accident . . . excluding (a) loss from fire (or from the use of water or other means to extinguish fire), (b) loss from an accident caused by fire . . . (e) loss from any indirect result of an accident.
Sect. IV. To pay . . . such amounts as the assured shall become obligated
to pay by reason of the liability of the assured, including liability for loss of services, on account of bodily injuries (including death at any time resulting therefrom) sustained by any person and caused by such accident . . .
"Accident" defined in policy as meaning
a sudden and accidental tearing asunder of the object or any part thereof caused by pressure of steam, air, gas, water or other liquid, therein, or the sudden and accidental crushing inward of the object or any part thereof caused by vacuum therein; and shall also mean a sudden and accidental cracking of any cast iron part of the object, if such cracking permits the leakage of said steam, air, gas, water or other liquid, but leakage at valves, fittings, joints or connections shall not constitute an accident.
"Objects" insured in plaintiffs' mill, including bleacher tank normally used for bleaching linseed oil-Tank used for blenching turpentine-Door of tank blown off by inside pressure of gas which, on admixture with air in room, formed an explosive mixture - Explosion, probably due to presence of naked gas flame or electric spark, followed by fire - Evidence of flash or flame seen just before explosion-Claim brought by plaintiffs against defendants in respect of loss arising from explosion -Full settlement by fire companies both in respect of fire damage and in respect of damage due to explosion, plaintiffs agreeing to assign to fire companies all plaintiffs' "rights, title and interest in and to" plaintiffs'
Boiler Inspection & Insurance Co. v. Sherwin-Williams Co.
P.C.
92
claim against defendants - Defences: that loss was not caused by "accident" as defined in policy, but by subsequent explosion; that loss was due to fire; that "accident" was not direct cause of loss; that, plaintiffs having received full indemnity from fire companies, the present action was no longer maintainable; and that there was concurrent insurance by the fire companies in respect of loss or damage by explosion entitling defendants to invoke the "Other Property Insurance Clause" of their policy and to apportion their liability with the fire companies- Civil Code of Lower Canada, Sects. 1570, 1571-Code of Civil Procedure of the Province of Quebec, Arts. 77, 81.