Ganado Advocates Tuesday, 16 January 2018, 11:38 Last update: about 4 years ago. Proximate cause i s a common law doctrine was developed in the state courts within tort . H��V�j1��Wx]ǖ�Ǭ�誅�E? The doctrine is deeply rooted in outdated and obsolete models of causation in tort law, some notably prom-ulgated by Dean William L. Prosser and fixed in the Second Restatement of Torts while he served as its Reporter. Here the proximate cause of falling off the last brick is certainly the kick because the strength of the kick was such that it could effectively make the last brick fall without the intervention of any new force started. Probably his answer will be the correct one”. %PDF-1.6 %���� A similar view was expressed in Incorporated General Insurances Ltd v Shooter 1987(1) SA842(A) at 862D: “No difficulty arises when only one cause has to be considered. At common law the general principle then was that if there are two or more proximate causes, but that one of those causes was excluded under the policy then the insurer is not liable to indemnify the insured for the loss, notwithstanding that the other cause of the loss is not an excluded loss and falls within the ambit of the policy coverage. 42, 1939). - … Had the words “its own” not been there the resultant fire damage would not have been covered under the rule of proximate cause. Determining Proximate Cause Through Different Rules. Proximate cause refers to the first event, or first peril, in a series of events that cause damage in an insurance claim. The principle of proximate cause has been established to solve such a cumbersome situation and to enable a claims manager to decide whether a claim is at all payable or not and if payable, then to what extent. It has been well defined in the leading case of Pawsey V. Scottish Union and National (1907) as follows : “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”,’ It is the immediate cause and not the remote cause. This is so because throughout the spread and travel, with the help of natural wind, the fire retains its identity as an earthquake fire. Insurance Glossary Defines: Proximate Cause — (1) ... As a principle of tort law, proximate cause refers to a doctrine by which a plaintiff must prove that the defendant’s actions set in motion a relatively short chain of events that could have reasonably been anticipated to lead to the plaintiff’s damages. Marine Insurance: The Doctrine of Proximate Cause and Insurance against War Risks at Sea. He is being taken to the hospital by an ambulance. It is also hard to understand what it means and hence hard to apply it. Proximate cause, or the Latin Causa Proxima, relates to the cause of the loss in that the event of the peril insured against must be covered under the insurance contract (policy), and the dominant cause of the event must not be excluded. Subrogation Principle in Insurance: How it Works? 34 0 obj <> endobj The proximate cause itself may not do any direct damage. A model of causation more rational than the "doctrine of efficient nature of the insurance policy and whether a tort proximate cause analysis should be used in an insurance contract analysis. The doctrine of proximate cause is one of the six principles of insurance. The concept of covered “perils” only exists in the property insurance context for the purpose of determining what causes of loss will be covered. In MacGillivray on Insurance Law (11th Ed, 19-001, page 513) it is said that “A proximate cause is not the first, or the last or the sole cause of the loss: it is the dominant or effective or operative cause”. MrJustice Wright. DOCTRINE OF PROXIMATE CAUSE In case an individual is injured due to someone else’s negligence, one can easily claim damages due to the negligence at the end of that individual. 0000008510 00000 n Double Insurance 35 Chapter 9. The concept of Proximate Cause was first distinctly stated as a legal doctrine by Bacon, and was embodied in the first of his max- ims in the phrase Iii ure non remola Causa, sedproxima spectatur. The following morning he is discovered by some persons. 1 Efficient proximate cause is the one that sets others in motion. Because proximate cause is the darling of law professors and bar examiners! 0000014929 00000 n Proximate cause can be direct, dominant, effective, immediate cause. In the meantime, due to the severe exposure, the contracts pneumonia and dies. In Washington, a judicial doctrine called the “efficient proximate cause” rule may apply and affect insurance coverage when multiple events combine to cause a loss. There is an earthquake fire somewhere near the insured building. Example: Boiling Enamel. It looks for what is the reason behind the loss, is that is an insured peril or not. Certain states take into consideration the “but for” rule for proximate cause. Due to the prevailing wind, the fire spreads gradually to neighboring buildings one after another and ultimately sets the insured building into the fire. 0000007678 00000 n Concurrent cause is actually a misnomer because it suggests that the events, actions, or forces must occur simultaneously. vi) Causa Proxima: In a contract of insurance, the governing rule is the proximate cause to fix the liability of the insurer. There might be multiple causes for the delay but the aptest cause must be looked into. Co. v. Partridge (1973) 10 Cal.3d 94, which holds that, where an injury is proximately caused by two or more independent causes, the insurer is liable if any of those causes is covered under its policy. Let us, however, assume that as a result of the kick only 6 bricks fall but suddenly a man throws a stone on the 7th brick and gradually falls the 7th, 8th, 9th, and 10th brick. The claim is not payable because the proximate cause of loss is earthquake fire and not ordinary fire even though the earthquake had nothing to do with the insured building. California Courts have interpreted California Insurance Code sections 530 and 532 to codify the efficient proximate cause doctrine. Salient features 18 Reinstatement 23 3. Causation – the relationship between cause and effect – can play a key role in determining whether a claim is approved or denied, particularly as it relates to commercial property insurance coverage. This means understanding if the injury would occur but for the action or lapse of the defendant. Essentially, the proximate cause in law should not remain as a mere open question of fact. A policy may cover certain perils mentioned specifically therein (known as insured perils), whilst some perils may be specifically excluded (known as excepted perils) and some may still be neither included nor excluded (known as uninsured perils). 4�"-��[��WG�o�5�,�c{..���yt�����MZ����ͯ���x\��o�5t���V����ߗ�%���xF"m����k�yf�76�m�z1�y�͗�S��p�ArD#�f�N�ss+eO���d�I�ddlȇm�o��9KBbD=z�/�-�>1�Z�"s���p�. Let’s work through a fact pattern. It contained a provision exempting the insurer from liability for “loss or damage by fire which may happen or take place by means of any invasion, insurrection, riot or civil commotion, or of any military or usurped power.” There might be multiple causes for the delay but the aptest cause must be looked into. Journal of Insurance Coverage. 633, 643. Ins. Definition 26 2. endstream endobj 35 0 obj <> endobj 36 0 obj <> endobj 37 0 obj <>/Font<>/ProcSet[/PDF/Text]/ExtGState<>>>/Type/Page>> endobj 38 0 obj [/ICCBased 51 0 R] endobj 39 0 obj <> endobj 40 0 obj <>stream The principle of proximate cause virtually revolves around the claims administration and, more precisely, diagnosing the playability or otherwise of a claim on the question of perils covered by a policy. Salient features 27 3. Duffy is in the road construction business, and uses boiling enamel as part of the construction process. 53 0 obj <>stream While the efficient proximate cause is said to set into motion a chain of events, it is not necessarily the triggering cause, rather it is the predominating cause. Therefore, Evanston argued coverage was triggered under the “concurrent proximate cause” doctrine established by the California Supreme Court in State Farm Mut. While this has been insisted upon frequently in the past, to-day as never before there is a movement in all departments of knowledge, - in law, in metaphysics, in … This comment certainly conveys the feeling of the learned judge as to how he feels the importance of common sense in finding out the proximate cause. Here the proximate cause of his death is accident or falling from the horseback, the reason being that injury leading to unconsciousness, exposure to severe cold and then pneumonia are all-natural events developing gradually one after another without really being intervened by a new or independent source (The example is based on a judgment given in ETHERINGTON V. LANCASHIRE AND YORKSHIRE ACCIDENT INSURANCE Co., 1909). What is this proximate cause then? We would be well served by getting rid of these terms and other jargon as a prologue to the development of a set of simple and cogent doctrines. 0000000016 00000 n Proximate Cause — (1) The cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. Doctrine of Proximate Cause Many policies stipulate that a loss would be excluded only if it results ‘solely’, ‘exclusively’ or ‘directly’ from an excluded peril. 0000001444 00000 n In this case, scratches may be a remote cause. 0000007930 00000 n However, the present school of thought has given this doctrine the status of a principle and, therefore, now-a-days it is considered to be one of the six principles of insurance, backed up by … Here, going to the cinema may be simply a remote cause without proximately causing his death. This is where the doctrine of proximate cause helps. The best example here is probably the standard fire policy. Proximate cause in insurance law: Fire following earthquake Alistair McDonald* Insurers use exclusions in material damage policies to define or limit their exposures to losses to commercial property* 1 resulting from earthquake and fire following earthquake. In insurance cases the policy enumerates and thus highlights the possible causes to which attention should be given. It is the immediate cause and not the remote cause. doctrine of proximate cause has to be applied for the purpose of ascertaining which of the successive causes is the cause to which the loss is to be attributed within the intention of the policy.1 Doctrine of Proximate Cause Proximate cause refers to an action that leads to an unbroken chain of events; events that end with someone suffering a loss. Development of legal doctrines and in their application is impossible without a clear under-standing of elementary definitions concepts... 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