Chapter 6: Proximate Cause Flashcards
Define proximate cause
Bonus: Name the legal case this definition comes from
Proximate cause means the active, efficient cause that sets in motion a train of events which brings about a result, without the intervention of any force started and working actively from a new and independent source
Pawsey v. Scottish Union and National (1907)
What will the proximate cause of a loss always be?
The dominant cause
What does Marsden v. City & County Insurance Company tell us to do when determining the proximate cause?
Apply common sense by looking at cause and effect.
A shopkeeper insured their window against any loss or damage except that arising from fire. A fire broke out on a neighbouring property causing a crowd to form. This crowd began rioting and broke the window. It was ruled that the loss was covered. It was not inevitable that a crowd would form then riot after the fire and so the damage was not inevitable as a result of the fire. Therefore the fire was not the proximate cause
What 3 classifications of perils are there?
- Insured perils - specifically named as covered
- Excepted/excluded perils - specifically named as not covered
- Uninsured/Unnamed perils - not mentioned in the policy at all
Why is it necessary to establish the proximate cause?
To determine if there is coverage under the policy and to determine what excess/deductibles may apply
When is it necessary to establish the proximate cause?
When there is more than a single cause and not everything in the chain of events leading to the loss is an insured event
Is the insurer liable for an uninsured/unnamed peril if the proximate cause is an insured peril?
Yes
You fall from your horse and are injured. You are taken to hospital where you catch an infection and die (sorry). What is the proximate cause of your death?
The infection.
Although it would not have happened without the fall from the horse, that by itself would not have led to your death without the intervention of another outside force (the infection) - it was not foreseeable that the fall would lead to the infection
Why is it important to check the wordings of exclusions?
They can modify how the doctrine of proximate cause is applied
You have a homeowners policy that does not cover water damage. An electrical fault leads to a fire on the property. The fire brigade cause water damage to the fire when putting the fire out. Would a claim be paid?
Yes - even though water damage is not covered the proximate cause was an insured peril so there is coverage
