John Deere Limited v. Promutuel Lac St-Pierre – Les Forges, S.C. Richelieu, 765-17-000982-100, July 17, 2012, L. Lacoursière

For the first time, the Superior Court has clarified the status of a creditor under a non-automobile insurance policy, in this instance an agricultural policy.

John Deere was named as the creditor on Promutuel’s policy. John Deere owned a tractor leased to Hugo Therrien, who was insured by Promutuel. Therrien reported the tractor stolen, but later admitted that he had colluded in planning the “theft.”

Relying on Court of Appeal jurisprudence, which has established that a creditor under an automobile insurance policy should be considered as an additional insured, John Deere argued that it was also an additional insured under Promutuel’s policy and that accordingly Therrien’s intentional fault could not be opposed against it.

The court held that:

• The identification of John Deere as a creditor was not sufficient to qualify it as an additional insured;
• The disappearance of the tractor under those circumstances constituted a risk that was excluded under Promutuel’s policy;
• In its capacity as the beneficiary of a stipulation for another, John Deere had no more rights than did stipulator Therrien;
• Consequently, John Deere’s action was dismissed with costs.