When a bus is called a Party Bus, the question is whether it is a bus or party - or something like that! In a case aptly titled Party Bus Atlantic Inc. v. Temple Insurance Company, 2016 NSSC 96, Justice Campbell opens with the following:
[1] The name of the insured in this case is Party Bus Atlantic Inc. (“Party Bus”). When an entity of that name is involved in litigation it is not surprising that the debate would at some point turn to whether the emphasis is on the party or on the bus.
[2] This is a dispute about whether an insurer should be required to defend an action taken against Party Bus. The Co-operators Group Limited (the “Co-Operators”) issued a motor vehicle policy to Party Bus. Temple Insurance Company (“Temple”) issued a commercial general liability policy to Party Bus. That policy excludes coverage for claims arising out of the use, ownership or operation of an automobile. Now, Party Bus has been sued by a person who says that she was injured in a fall while she was a passenger on the bus operated by Party Bus. The Co-Operators, as the motor vehicle insurer, is already involved in defending against the claim.
Justice Campbell goes on to frame the issue as:
[9] The bus operated by Party Bus is a bus. Its purpose is to convey people from place to place on a public highway. Whether they silently suffer through a trip to a destination or enjoy the mobile party atmosphere, does not change the fact that the purpose of the bus is to convey people.
[10] Claims arising from a fall that is alleged to have happened on the bus, may be argued to relate to business practices and as such are self-standing claims, not derived from the driving of the bus or from its operation by the driver. They do however arise directly from the operation of the bus as a vehicle by Party Bus, and from the use and ownership of the bus, as a vehicle, by Party Bus. The claims are clearly and unambiguously exempt from coverage under the Temple commercial and general liability policy.
The CBC story saves you the hassle of having to read the whole case. Click to see what the judge ruled.
Now if you liked that story then read ABlawg's coverage of this latest AB QB case on garage party liability.
