In Brief
The appellant operated a cold storage facility storing potatoes under a Deterioration of Stock Insurance Policy. After the potatoes sprouted in storage, a claim was submitted. The insurer denied the claim, citing a policy exception that excluded liability if refrigeration chamber temperatures did not exceed 4.4°C (40°F). The insured initially stated proper temperature was maintained but later claimed temperature had risen. The Supreme Court held the exception was unambiguous and applied to the case. Since temperature records and the insured's own admission showed temperatures remained below the threshold, the insurer was not liable. The Court found no reason to read down the exception clause as it was fundamental to the policy's purpose and not inconsistent with it. The appeal was dismissed.
The lawyer headnote and full judgment text are available to registered users.