Opinion ID: 2597485
Heading Depth: 1
Heading Rank: 6

Heading: application of british columbia law

Text: We turn now briefly to the application of these principles in the very limited context of determining the scope of the PAU and whether it is enforceable outside of British Columbia. Initially, some Canadian courts interpreted the PAU as being limited to third party liability coverage. E.g., Shea v. Shea, [1985] 66 B.C.L.R. 92 (B.C.Ct.App.) (interpreting the 1964 version of the PAU and holding it applies only to third party liability coverage). [8] However, after the Shea decision in 1985, the insurance superintendent changed the standard language of the PAU to ensure there is no misunderstanding regarding PAU coverage of no-fault benefits and other kinds of coverage, which are required by provincial statutes. The changed language is broad and also requires other kinds of coverage mandated by provincial statutes, such as uninsured motorist insurance and unidentified motorist coverage. E.g., Schrader v. U.S. Fid. & Guar. Co., [1987] I.L.R. ¶ 1-2173 (Ont.Div.Sup.Ct.). Since 1990, Canadian courts have uniformly held obligations under the PAU extend to any kind of insurance coverage mandated by provincial statutes and regulations. See, e.g., Anderson, 51 B.C.L.R.2d 93; Marchand v. Alta. Motor Ass'n Ins. Co., [1994] 89 B.C.L.R.2d 293, at ¶ 4 (B.C.Ct.App.); Maligmat v. Ross, [1995] 10 B.C.L.R.3d 318, at ¶ 54 (B.C.Sup.Ct.); Healy, 44 O.R.3d 404, at 409; Wawanesa Mut. Ins. Co. v. Lindblom, [2001] 28 C.C.L.I.3d 163, at ¶¶ 29, 36 (Alta.Ct.App.); cf. Rager v. Marwick, [1997] 41 B.C.L.R.3d 145 (B.C.Ct.App.) (holding that insurers who have not filed a PAU are obligated to extend only coverage that is explicitly provided for in the insurance contract). Pursuant to section 134(9) of the Insurance Act, foreign insurers, who file a PAU, agree to compensate their insureds according to the same terms that British Columbia residents are compensated by the ICBC when they are involved in a British Columbia motor vehicle accident. Diotte, 28 C.C.L.I.3d 125, at ¶ 15. The law in British Columbia is well settled. PAU signatories are not responsible for merely third party liability coverage as contended by Farmers in the alternative; rather, they are also responsible for first party no-fault benefits entitled by their insureds under the province's compulsory automobile insurance laws. Diotte, 28 C.C.L.I.3d 125, at ¶¶ 15, 18, 23. Additionally, it is undisputed that British Columbia's insurance law requires coverage for first party no-fault benefits up to Can$150,000. Based on the evolution of the common law in Canada and British Columbia and according to the most recent decision by a provincial appellate court, mandatory insurance requirements are determined by the substantive law of the province where the accident took place regardless of the forum in which the suit is actually litigated, especially when the insurer has engaged in maneuvering to avoid application of that substantive law. See generally THE CONTINUING LEGAL EDUCATION SOCIETY OF BRITISH COLUMBIA, BRITISH COLUMBIA MOTOR VEHICLE ACCIDENT CLAIMS PRACTICE MANUAL 11-6, -7 (2d ed.2000); see also Wawanesa Mut. Ins. Co., 28 C.C.L.I.3d 163. Applying British Columbia law, we hold Farmers is obligated under the PAU it filed to provide Mulcahy with first party no-fault benefits up to Can$150,000 under the facts of this case. [9] Because the issue of coverage under the PAU is dispositive of Farmers' obligations, we do not reach the issue of whether Farmers is obligated to provide benefits according to British Columbia law under the out of state coverage policy provision in Mulcahy's insurance contract.