Ocean Fisheries Ltd. v. Pacific Coast Fishermen's Mutual Marine Insurance Co.
T-2205-96
Hargrave P.
2/1/97
14 pp.
Insurer sued on insurance policy on fishing vessel North Land owned by plaintiff-Seeking to have action stayed so claim may be arbitrated-Mutual non-profit organization of policy holding vessel-owning fishermen-Run by Board of Directors elected from among members-North Land one of dozen vessels of which plaintiff either owner or has ownership interest-Capsized in heavy weather off Cape Mudge near Vancouver, became total loss-Insurer denied claim, alleging North Land operated by master other than master approved by it-Action begun in October 1996-Incorporated by-laws governing insurer, members-No issue as to whether plaintiff aware of by-laws-Whether insurer entitled to stay of action in favour of arbitration as provided in by-laws-International Commercial Arbitration Code adopted by United Nations Commission on International Trade Law (UNICTRAL Code)-Code, Art. 8 requiring Court to refer to arbitration matter subject of arbitration agreement-Residual power in Court to deal with jurisdiction-No ambiguity in provisions of by-laws dealing with arbitration-Dispute one for arbitration under insurer's by-laws, s. 15-Ambiguities to be construed against insurer-Object of mutual insurance organization to avoid loss among members-Identity of interest between owners of insurer and insureds-Mere ambiguities in insurance agreement ought not automatically be construed in member's favour as insured-Ought first to be considered in light of insurer's objectives-By-laws, s. 13 dealing with "claims" under policies or between members and insurer-S. 15 dealing with "disputes" among members-Claim not necessarily precondition for dispute, for latter may arise before former completely constituted-Dispute may come into existence before payment required-By-laws, ss. 13, 15 stand alone substantive arbitration provisions, each followed by procedural rules to govern arbitrations-No settlement offer herein, rather complete denial of coverage based upon alleged breach of condition set out in Members Handbook-No ambiguity to account for as dispute clearly falls within category of dispute between insured member and shareholder on one hand and insurer on other hand, to be determined by arbitration under by-laws, s. 15(a)-All claims and disputes to be arbitrated-Determination of question of coverage clearly dispute subject of arbitration agreement-Action stayed in favour of arbitration-Commercial Arbitration Code, R.S.C., 1985 (2nd Supp.), c. 17, Sch., art. 8.