Summary

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Summary

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Insurance — Automobile insurance — Respondent’s claim for indemnity — Legal test for indemnity under a third party liability insurance policy for injuries arising from the “use or operation” of a motor vehicle — Whether the Court of Appeal erred in its interpretation of the phrase “arises out of the use or operation by the insured of a vehicle” in automobile insurance legislation by erroneously applying a “but for” test for causation — Whether there are conflicting appellate decisions

The respondent was driving her automobile, when the passenger, her boyfriend, grabbed the steering wheel. The respondent lost control and the vehicle crashed. The passenger was killed in the accident. The respondent was severely injured in the accident. Judgment was entered against the passenger for the respondent’s losses. The respondent then brought an action for indemnity against the applicant Insurance Corporation of British Columbia. The trial judge dismissed the respondent’s claim for indemnity. The Court of Appeal allowed the appeal.

Lower Court Rulings