West York Sales and Leasing Inc. v. Dominion of Canada General Insurance Company
This page is a summary and commentary on a publicly available court decision, written for general informational and educational purposes only. It is not legal advice and does not create a lawyer-client relationship with Azimi Law, regardless of how specific or applicable it may seem to your situation.
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The Facts
West York owned a 2017 Honda Civic and leased it to a rental business. The business had a fleet auto policy with Dominion running from September 15, 2019 to September 15, 2020, which included the standard fleet endorsement (OPCF 21A) allowing vehicles to be added and removed through monthly reports. The Civic was not on the schedule when the policy began. It was in a collision on August 25, 2020. The rental business did not tell either insurer or the owner. It listed the vehicle in a monthly report filed on September 29, 2020, which was late and did not mention that the car had been leased before the policy began. Nothing was said to Dominion about the accident until both companies were sued in July 2023, almost three years later. The application judge ordered Dominion to defend and indemnify West York and granted relief from forfeiture.
What the Court Decided
The Court of Appeal reversed. The endorsement says there is no coverage for a vehicle owned or leased before the policy began and not listed on the schedule until a request for coverage is made. The Court held the word 'until' is clear: coverage for such a vehicle does not exist before a request is filed. The Civic was in that category, so the August 2020 collision was outside the policy, and the late monthly report did not change that for an earlier accident. It also distinguished the endorsement's premium-calculation clause from the clause that decides whether coverage exists. The Court left open how much a communication has to say to count as a request, and the decision does not decide what happens when a request is made on time.
A vehicle owner or lessor who assumes a fleet policy covers every car in the fleet can be left defending a lawsuit with no insurer. For an injured person suing a rental or fleet company, the case is a reminder that an insurer may deny coverage for a vehicle that was never properly added, and that the lawsuit may then rest on whoever else is liable. For businesses that rent or lease vehicles, it is a reminder to ensure that every vehicle is added and that accidents are reported promptly.
Does This Affect You?
- ✓You own or lease out vehicles that are covered by someone else's fleet policy.
- ✓You were injured in a collision involving a rental or leased vehicle and the insurer says the car was not covered.
- ✓Your business adds and removes vehicles through monthly reporting on a fleet policy.
Key Takeaways
- A vehicle that was owned or leased before a fleet policy began and is not on the schedule may have no coverage until a request is filed.
- A late monthly report does not bring an earlier accident within the policy.
- Delays in reporting an accident or listing a vehicle can leave an owner or lessor without an insurer to defend them.