The appellant (“Libra”) carried on a truck transport business at volumes which exceeded the capacity of its own four rigs, so that it contracted with over 20 subcontractors, who owned their own rigs and operated them under the Libra umbrella. As Libra could obtain insurance at more favourable rates, it arranged coverage for the various vehicles, with the premiums broken down on a vehicle by vehicle basis, and recovered the premiums from the subcontractors on a monthly basis. Highway transport licences were handled on a similar basis.
Bowie J stated (at para. 13):
[O]nly an insurance company licensed to do so may sell insurance, and only a provincial government may sell motor vehicle licences…
He also did not agree that separate consideration needed to be received for the insurance and licences, stating (at para. 14):
I know of no reason that would prevent [Libra] from supplying its services as an agent to obtain licences and insurance along with other services for a single consideration.
Vanex Truck Service was distinguished (at para. 17) on the basis that :
[W]hat Vanex supplied to the drivers was the right to drive their vehicles with the benefit of licences and insurance for which it had paid…[and] the Appellant does not appear to have advanced an argument based on agency in that case.
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