Claim For Property Promised Years Before Upheld

verbal-agreement

A Claim For Interest In Property Verbally Promised Years Before, Was Upheld By Court As  An Agreement

Verbal promises to provide property years in the future, in return for services  for the life of the promissor, are increasingly common in estate litigation.

Such arrangements, usually made between loved ones, and  with the best of intentions, can go “sideways” very easily, simply due to the vagaries of life.

 

Such was the recent Ontario decision of Cowderoy v Sorkos Estate 77 ETR (3d) 246

(The decision contains an exhaustive review of the equitable principle of proprietary estoppel, which I will reproduce in the February 10.13 blog)

 

The Testator was involved in a common law relationship with plaintiffs’ grandmother for approximately 40 years.

During the relationship, the  testator purchased a farm and cottage, and ran various businesses .

The Testator and plaintiffs had a close relationship, substantively as grandfather and grandchildren

the Plaintiffs claimed they entered agreement with testator in 1985, when they were 17 and 13, that in exchange for their ongoing assistance with farm and

cottage testator would leave them properties, and money for maintenance, on his death

The Plaintiffs assisted the testator with maintenance and improvements to both properties over next 25 years ,and on his death in 2009, the  testator left three wills:

1)  2001 will bequeathed farm and property, as well as $500,000 each, to plaintiffs;

2)  2003 will bequeathed $50, 000 to plaintiff P, $1,000 to plaintiff M, and did not bequeath properties to plaintiffs ;

3)  2008 codicil increased bequest to M to $25,000, but otherwise 2003 will remained unchanged

The  Plaintiffs brought action against estate for interest in farm and cottage.

The action was allowed

The conduct of both plaintiffs and testator could be considered to determine if sufficient acts of part performance took alleged agreement outside operation of Statute of Frauds

From the time of the 1985 agreement, the  testator and the plaintiffs unequivocally ordered their affairs with each other on basis of agreement .

The  Plaintiffs had clearly assisted testator with maintenance and improvements to both properties over 25 years

The witness testimony was evidence of testator’s actions, and was corroborative of 1985 agreement .

The 2001 will was also corroborative of existence of agreement, despite changes made in 2003 will and codicil .

The contract was one which, if it were properly-evidenced by writing, would have been specifically enforceable .

Proprietary estoppel applied in circumstances.

The  Testator had made representations on numerous occasions, over course of years, and in front of third parties.

The Testator’s representations were clear and unequivocal and at all times related to farm and cottage .

No question arose that plaintiffs had relied on representations made by testator in 1985 to their detriment, often subordinating their lives to testator’ s wishes and demands.

The Testator was no longer in legal position in 2003 to leave farm and cottage to beneficiaries other than plaintiffs

The plaintiffs were granted interest in farm and cottage, but purported transfer of funds claimed by plaintiffs lacked necessary corroboration

Parol Evidence Rule Not Permitted to be Instrument of Fraud

Parol Evidence Rule Not Permitted to be Instrument of Fraud

“Parol evidence”‘ that is verbal evidence to show that the written contract was not the true contract,  admitted to prevent a fraud upon a trust.

The BC Court of Appeal upheld the finding of a trust in the decision Bradshaw v Stenner 2012 CarswellOnt 1936

The plaintiff transferred her property to the defendant, allege deadly on terms of trust, that the defendant would re convey the property upon request

The defendant ultimately refused to do so, and the plaintiff successfully sued the defendant and both the trial and appeal courts held that there was a trust.

The defendant had paid no funds for the property and the plaintiff always remained in possession of it.

The trial judge found the plaintiffs version to be more credible.

At issue was the legal predicament that the attempted to prove the trust through the introduction of “Parol evidence”‘ that is verbal evidence to show that the written contract was not the true contract, and that a trust should be imposed over the entire transaction

The Parol evidence rule is a hard and fast concept in contract law that basically says Parol evidence cannot be introduced into evidence to refute the written terms of a contract.

Both courts here did allow the Parol evidence to be admitted on the basis that the Parol evidence rule did not apply to render in admissible evidence used to create a trust, as where a trust is alleged and proven, then the Parol evidence rule has no application.

To have not permitted the oral evidence to be admitted would have permitted the said rule to be used asan instrument of fraud.

disinherited.com applauds this decision in estate law as the law of contracts re the Parol evidence rule can lead to misjustice if oral evidence is not admissible.

There are many cases where the courts have worked around the rule by finding such as two contracts rather than one.

– See more at: http://www.disinherited.com/blog/parol-evidence-admitted-prove-trust-so-parol-evidence-rule-not-permitted-be-instrument-fraud#sthash.gd1yWRYc.dpuf

No Punitive or Aggravated Damages In Wrongful Death Claims

No Punitive or Aggravated Damages In Wrongful Death ClaimsSpanking

Glenn v Seair Seaplanes and others, 2012 BCSC 1726  arises from a seaplane crash in November  2009.

The action has been brought against the owner and operator of the seaplane, Seair Seaplanes Ltd. and the pilot, Francois St. Pierre.

The plaintiffs also plead negligence on the part of the other defendants, Viking Air Ltd., which holds the aircraft type certificate for the seaplane, Victoria Air Maintenance Ltd., which maintained and serviced the seaplane and the Attorney General of Canada who regulates commercial aviation in Canada.

Mr. Glenn survived the crash but was unable to exit the cabin. He subsequently drowned. Ms. Glenn was able to escape the cabin and was rescued.

Mrs Glenn brought an action for damages and at issue before the court on a rule 9-4 application was whether aggravated and punitive damages are available or not in claims arising from a wrongful death.

 

The Court held that they are not and followed BCCA authority for such, whether under the Family Compensation act or the Estate Administration act.

The following authorities were quoted:

The British Columbia Court of Appeal in Lodge v. Fraser Health Authority, 2009 BCCA 108  accepted that it was settled law that a claim for aggravated damages or punitive damages was not available under the EAA. Bauman J.A. (as he then was) put it this way:

[53]     In my view, the trial judge and this court, sitting as a panel of three, are bound by the decisions in Campbell v. Read [(1987), 22 B.C.L.R. (2d) 214 (C.A.)], and Allan Estate v. Co-Operators Life Insurance Co., 1999 BCCA 0035, 62 B.C.L.R. 3d 329.

[54]     In Campbell v. Read, this court held that a claim for aggravated damages could not be maintained under the Estate Administration Act, R.S.B.C. 1996, c. 122.

[55]     The same result in respect of a claim for punitive damages was reached in Allan Estate.

[56]     Here, the Estate could not maintain these claims.

[10]    I turn now to the FCA. The Court of Appeal has also addressed the questions of law at bar under the FCA squarely. In Campbell v. Read, (1987), 22 B.C.L.R. (2d) 214 at 217, Wallace J.A. stated:

Circumstances which may aggravate the loss or damage sustained by an injured party are personal to that individual in the same sense as is the pain, suffering and loss of amenities experienced by the injured party. Such loss is not an injury of the kind dependants sustain as a “result of the death of the deceased”.

[11]    In Allan Estate v. Cooperators Life Insurance Co., 1999 BCCA 35, 62 B.C.L.R. (3d) 329, Lambert J.A. stated:

[71]     Punitive damages are not damages proportioned to the injury resulting from the death. The remedy under the [Family Compensation Act] is a statutory one. There is no authority in the statute to award punitive damages. So punitive damages cannot be assessed or awarded in a Family Compensation Act action.

– See more at: http://www.disinherited.com/blog/claims-punitive-and-aggravated-damages-cannot-be-made-wrongful-death-claims#sthash.ZP3BOdr6.dpuf

Ontario Court Upholds Frivolous Action Award Against Losing Party

Ontario Court Upholds Frivolous Action Award Against Losing Party

Costs For Frivolous Action

The recent Ontario decision involving Smith Estate v Rotstein 2012 CarswellOnt 9064, provides a detailed examination of recent awards for court costs involving lengthy but frivolous action estate litigation fights.

Here a sibling engaged in lengthy and complex litigation alledging undue influence and lack of testamentary capacity when there was little or no evidence of same.

The trial Judge awarded her brother full indemnity for his legal expenses which totalled over $700,000 in fees and $30,000 in disbursements.

This award was upheld by the courts with the following excerpts:

 

“As the Court of Appeal made clear in its decision in McDougald Estate v. Gooderham,[2] two fundamental principles now govern the award of costs in estate litigation.

First, the starting point remains the general principles for determining the responsibility for costs applicable to all civil litigation, as expressed in Section 131 of theCourts of Justice Act, Rule 57 of theRules of Civil Procedure and, since January 1, 2010, the principle of proportionality articulated in Rule 1.04(1.1).

Second, public policy favours a departure from those general costs principles and the payment of the parties’ litigation costs by the estate in two circumstances:

(i)      where reasonable grounds existed upon which to question the execution of the will or the testator’s capacity in making the will; or,

(ii)   where the difficulties or ambiguities in the will that gave rise to the litigation were caused, in whole or part, by the testator.

In those two circumstances it is reasonable to look to the estate to bear the costs of resolving those questions because public policy requires courts only to give effect to valid wills that reflect the intention of competent testators.

[9]               The discipline imposed on litigants by the “loser pays” principle in civil litigation was viewed by the Court of Appeal as appropriate in estate litigation:

The modern approach to awarding costs, at first instance, in estate litigation recognises the important role that courts play in ensuring that only valid wills executed by competent testators are propounded. It also recognises the need to restrict unwarranted litigation and protect estates from being depleted by litigation. Gone are the days when the costs of all parties are so routinely ordered payable out of the estate that people perceive there is nothing to be lost in pursuing estate litigation.[3]

[10]           It is crucial to note that the two exceptions to the “loser pays” principle in estate litigation are not class exceptions – i.e. the exceptions do not apply to all will challenge cases or all will interpretation cases.  On the contrary, as revealed by the four cases pointed to by the Court of Appeal in McDougald Estate as examples of the application of the modern approach to costs, responsibility for the costs of will interpretation or will validity litigation may well be placed on the shoulders of the individual litigants.[4]  Only where the parties can demonstrate that reasonable grounds existed to question the execution of the will or the competency of the testator, or the presence of a reasonable dispute about the interpretation of a testamentary document, will the courts consider whether it is appropriate to award costs of the litigation from the estate, rather than apply the “loser pays” principle.  The costs inquiry therefore will be specific to the facts and issues raised in each particular piece of estate litigation – no general class exceptions from the standard civil rules of costs exist for types of estate litigation.

Courts have awarded elevated, full indemnity costs when:

(i) one party was an innocent party to the proceeding and the court concluded that she should not experience any loss as a result of the conduct and actions of the defendant which resulted in the litigation;[14]

(ii) one party made baseless allegations of wrongdoing[15] or meritless claims of fraud, deceit, and dishonesty based on pure speculation against the other;[16] or,

(iii) it was clear shortly after the event in question that the plaintiff was blameless, but was required to proceed to trial because of disputes amongst the defendants about their share of liability.[17]

Ms. Rotstein persisted in a will challenge which, on the facts of this family’s history, really should never have been brought in the first place or, at least, should have been abandoned at a very early stage once Mr. Smith filed his evidence for the summary judgment motion.  There was no justification, in law or in fact, for Ms. Rotstein to have taken her challenge through to the hearing of the summary judgment motion

– See more at: http://www.disinherited.com/blog/ontario-court-upholds-award-against-losing-party-over-700000-costs-frivilous-action#sthash.EgOqwOHU.dpuf

Court Inherent Jurisdiction to Protect Those Who Need Protection

Court Inherent Jurisdiction to Protect Those Who Need Protection

Supreme Court Inherent Jurisdiction to Protect Those Who Cannot Protect Themselves

Referring  again to the Kenny Ng case, the wife as committee for the person of Kenny, had decided after seven years of him being in a coma, to remove his life support system.

His family applied to remove the wife as committee and substitute themselves so that they could essentially keep him alive.

The wife’s counsel argued that there was no legal basis to remove her as committee, and that she alone had the right to make that decision which was based on medical advice.

Kenny’s family appealed  to the Court to invoke its inherent jurisdiction, or parens patriae, to protect those who cannot protect themselves

Under the Patient’s Property Act,  ( PPA) the court may appoint a committee to take custody of a person who has been declared incapable due to mental infirmity.

Under the Health Care (Consent) and Care Facility (Admission) Act [HCCCFA] committees of the person are defined under that act to be permitted to make medical decisions on behalf of individuals who are in their custody.

The wife was appointed as Kenny’s committee under s.6(l) the PPA to both manage his affairs and to take custody of his person, including the power to make decisions under the HCCCFA.

The decision to withdraw Kenny’s food and water was made by the Respondent under the authority of s.l 1 of the HCCCFA.

Pursuant to s.6(2) of the PPA, a court has the power to rescind the appointment of a committee. The PPA does not, however, prescribe any criteria for that rescission.

The result is a legislative gap in the PPA, which invokes the parens patriae jurisdiction of the court.

In Re Bowman, 2009 BCSC 523, a 2009 BC Supreme Court Chambers decision, the court stated at paragraph 32 that:

On an application for either the appointment or removal of a committee [under the Patients Property Act], the test for determining who is appropriate to act as a committee invokes the parens patriae jurisdiction of this court and is governed by an assessment of who will serve the patient’s best interests.

The purpose and extent that the court can exercise its parens patriae jurisdiction is trite law, as set out by La Forest J. in the seminal Supreme Court of Canada case of Re Eve, [1986] 2 S.C.R. 388 at paras. 73, 74, and 77:

The parens patriae jurisdiction is, as I have said, founded on necessity, namely the need to act for the protection of those who cannot care for themselves. The courts have frequently stated that it is to be exercised in the “best interest” of the protected person, or again, for his or her “benefit” or “welfare.” (para. 73)

The situations under which it can be exercised are legion: the jurisdiction cannot be defined in that sense. As Lord MacDermott put it in J v. C., [1970] A.C. 668, at p. 703, the authorities are not consistent and there are many twists and turns, but they have inexorably “moved towards a broader discretion, under the impact of changing social conditions and the weight of opinion…” In other words, the categories under which the jurisdiction can be exercised are never closed. Thus I agree with Latey J. in R. X, supra, at p. 699, that the jurisdiction is of a very broad nature, and that it can be invoked in such matters as custody, protection of property, health problems, religious upbringing and protection against harmful associations. This list, as he notes, is not exhaustive, (para. 74)

…Though the scope or sphere of operation of the parens patriae jurisdiction maybe unlimited, it by no means follows that the discretion to exercise it is unlimited. It must be exercised in accordance with its underlying principle. Simply put, the discretion is to do what is necessary for the protection of the person for whose benefit it is exercised… The discretion is to be exercised for the benefit of that person, not for that of others. It is a discretion, too, that must at all times be exercised with great caution, a caution that must be redoubled as the seriousness of the matter increases. This is particularly so in cases where a court might be tempted to act because failure to do so would risk imposing an obviously heavy burden on some other individual [emphasis addedl. (para. 77)

– See more at: http://www.disinherited.com/blog/bc-supreme-court-has-inherent-jurisdiction-protect-those-who-cannot-protect-themselves#sthash.nEtu3UfJ.dpuf

Adverse Inference For Failure to Call Certain Evidence

adverse interest

There are certain cases where it is simply necessary and expected to call a particular witness who might have extensive knowledge as to the facts in question, and failing to do so, will lead the court to draw an adverse inference as to what that witnesses evidence would have been.

For example:

A plaintiff suffered whiplash injuries in two rear-end motor vehicle accidents which occurred six months apart.

Following the first accident, he attended a hospital emergency ward and saw his family physician once. He received physiotherapy treatments for one month.

His symptoms had resolved to a large extent by the time of the second accident which exacerbated his problems.

One year after the first accident, his symptoms had improved but had not disappeared.

The plaintiff, who was a 50 per cent owner in a carpet business, did not call his partner to testify regarding his injuries or regarding the company’s alleged income loss as a result of the plaintiff’s incapacity.

He produced no business records and had kept no record of his lost work days. The plaintiff sued for damages for personal injuries.

 

The Court held that although the plaintiff did suffer some loss of income, the substantial amount he claimed was not proven.

It was an appropriate case in which to draw an adverse inference against the plaintiff because of his unexplained failure to call his business partner to testify.

The partner could have attested to the plaintiff’s physical suffering and loss of ability to work, as well as to the income loss the company and plaintiff indirectly suffered as a result of the plaintiff’s incapacity.

 

Barker v. McQuahe(1964), 49 W.W.R. 685(B.C. C.A.) was applied, which stated:

 

An inference adverse to a litigant may be drawn if, without sufficient explanation, he fails to call a witness who might be expected to give important supporting evidence if his case were sound, Royal Trust Co. v. Toronto Transportation Commn., [1935] S.C.R. 671, 44 C.R.C. 90, 28 Can Abr 109; Murray v. Saskatoon (City)(1951) 4 WWR (NS) 234, at 239, 5Abr Con (2nd) 9 (C.A.), applied.“

– See more at: http://www.disinherited.com/blog/adverse-inference-be-drawn-failure-call-certain-evidence#sthash.1C2t0w6L.dpuf

Interim Injunctions

Interim Injunctions

Black’s law dictionary defines “injunction” as a “court order prohibiting someone from doing some specified act or commanding someone to undo some wrong or injury”.

In the Ng life support application blogged about yesterday, tINjunction sshhe patient’s family applied to the court for an injunction to raise the level of care from the lowest, level one,  that the committee wife had lowered it down to, up to level four or at least two where it had previously been.

If granted the court may grant the injunction on an interim basis, for a specific period of time, or until trial for example, or could grant a permanent injunction raising the level of care for the remainder of his life.

It remains to be seen if the court will interfere with the medical decision and the decision of the committee to lower the care down to level one.

The test for granting an interim injunction is set out in the case of British Columbia (Attorney General) v. Wale (1986), 9 B.C.L.R. (2d) 333 at p. 345 (C.A.),

which provides a two-pronged test as follows:

First, the applicant must satisfy the court that there is a fair question to be tried about the existence of the right alleged and a breach of the right, actual or reasonably apprehended; and

2. Second, the balance of convenience must favour the pronouncement of the order.

Canadian Broadcasting Corporation v. CKPG Television Ltd., [1992] 3 W.W.R. 279 (tab 3, Book of Authorities #1 of Petitioners, p. 6) sets out the factors

that must be considered by the court in determining the balance of convenience:

The adequacy of damages as a remedy for the applicant if the injunction is not granted and for the respondent if an injunction is granted;
The likelihood that if damages are finally awarded they will be paid;
The preservation of contested property;
Other factors affecting whether harm from the granting or refusal of the injunction would be irreparable;
Which of the parties has acted to alter the balance of their relationship and so affect the status quo;
The strength of the applicant’s case;
Any factors affecting the public interest; an
Any factors affecting the balance of justice and convenience.

– See more at: http://www.disinherited.com/blog/interim-injunctions#sthash.Y1WWdXe5.dpuf

Administrator Appointed Pending Litigation

Administrator Appointed Pending Litigation

Independent Administrator Appointed For  Estate Assets Pending Litigation, aka administrator pendent lite.

A common feature of many estate  disputes  is the acrimonious nature between the various claimants to the assets of the deceased.

In fact, certain cases become renowned within the profession and the courts for the extreme degree of the acrimony between the various parties.

The most  recent  decision of the ongoing saga Karsonas v. Karsonas Estate 2012 BCSC 1604 is yet another example of  litigation that seemingly never will end.

Without going into the details of why and who were involved in the acrimony, suffice to say that there were many previous contested court applications relating to this estate, and appeals there from.

In situations such as this, smart counsel will or should apply to the Supreme Court of British Columbia for the appointment of an administrator pendente lite,  ( Latin for “pending the outcome of the litigation”)

Mdm. Justice Ballance, who is vastly experienced in estate disputes, made such an order noting the extensive deterioration of the estate properties, a partition action between the testator and his children in regard to one property, and another court action by the plaintiff children disputing the testator’s last will and certain trust documents.

There was a contested cross -application by the niece of the deceased  to be appointed as executrix or administrator pendente lite, or trustee without compensation, that was dismissed.

The court noted that the hostility between the parties, and that the administration of the estate was fraught with obvious difficulties, required the appointment of an experienced neutral third-party which was vastly preferable to the niece, being blood related .

The court in fact allow the application of the testator’s children to have an independent trust company appointed as administrator pendente lite.

Production of Previous Wills File Refused Due to Solicitor Client Privilege

Solicitor Client Privilege

Wood v Wilkie and Millican 2012 BCSC 1120 involve an application for production of the will file of the solicitor who prepared the deceased previous will in 2008, that was subsequently replaced by a will, in contention, in 2009 the defendant opposes the application on the basis that the only will in contention is the 2009 will and that therefore the contents of the solicitors 2008 will file should remain privileged.

A master initially dismiss the plaintiffs application and the appeal to the Supreme Court judge was dismissed on the basis that the pleadings related only to the capacity of the testatrix to make a will in 2009, or undue influence in relation thereto, and no claim was made relating to the validity of the 2008 will.

The Court stated as follows:

“The court started from the general proposition that a lawyer’s file is absolutely privileged from production subject only to certain exceptions. The plaintiff argued that one of the exceptions is a claim based on undue influence. The plaintiff relied on Geffin v. Goodman Estate, [1991] S.C.J. No. 53. The plaintiff argued that case directed courts to allow production of the solicitor’s will file on the principle that the evidence obtained was likely to go to the deceased’s true intent. See also Gordon v. Gilroy, [1994] B.C.J. No. 1927.

[11]    At para. 18 of Fawcett, Chamberlist J. said:

As such, I am of the view that the exception to solicitor/client privilege is only made out where the issue is “what were the true intentions of the “testator” or, in Geffen, the settler of the inter vivos trust”. In the case at bar, the will itself is not being challenged.

[12]    The defendants argue that is precisely the situation in this case. The will that is challenged is the 2009 will and the defendants submit the solicitor’s file relating to that will has already been disclosed and it is the only file relevant to the testator’s intentions.

[13]    The plaintiff submits that the overall circumstances of this case, in particular the inter vivos transfer of the Christina Lake property, coupled with the allegations of undue influence, justify a more extensive disclosure order. However, the issues raised by the pleadings in the action relate only to the testator’s capacity to make the 2009 will or that she was coerced or under an improper influence when she did so.”

 

Murderer Allowed to Collect Insurance Proceeds of Victim Due to Insanity

Profit from crime

The Ontario Court of Appeal decision of Dhingral v Dingral Estate 2012 ONCA 261 departs from the long-term legal adage that  for reasons of public policy, a criminal may not benefit from his or her own crime.

In 1998, the husband ( appellant) took out a group life insurance policy in amount of $51,000  with his wife  named as beneficiary.

Under the policy, the wife was also insured and  the husband was the beneficiary.

The husband had been suffering from serious mental disorder for many years and in  2006, he  killed his wife.

He was tried on charge of second degree murder and in 2008, and was found not criminally responsible on account of mental disorder.

In May 2007, the respondent son, acting on a  Power of Attorney, submitted an Accidental Death Claim application claiming proceeds of insurance policy on behalf of his father.

The Insurer approved payment of the  insurance proceeds to the father  but did not immediately pay the out.

After the criminal trial, the son, now acting as administrator of mother’s estate, requested that proceeds should be paid to her estate.

In 2009, an order was granted requiring the insurer Life to deposit the insurance proceeds into court .

The husband  then brought an application to have proceeds paid to him.

The Application judge dismissed application  and the husband and the appeal was allowed.

The order of the application judge was set aside, and an order was made that money deposited with accountant of Superior Court of Justice, along with all interest accrued, was rightfully payable to the husband.

If person was found not criminally responsible on account of mental disorder was not morally responsible for act, there was no rationale for applying rule of public policy .

It was an error for application judge to describe the husband  as having committed second degree murder.

 

Decisions from the Supreme Court of Canada have provided various descriptions of the public policy rule. For example:

   Oldfield v. Transamerica Life Insurance Co. of Canada, 2002 SCC 22, [2002] 1 S.C.R. 742 (S.C.C.), at para. 11:
“The public policy rule at issue is that a criminal should not be permitted to profit from crime. Unless modified by statute, public policy operates independently of the rules of contract. For example, courts will not permit a husband who kills his spouse to obtain her life insurance proceeds, regardless of the manner in which the life insurance contract was worded. As Ferguson J. held in the court below, public policy “applies regardless of the policy wording — it is imposed because of the courts’ view of social values” (p. 119).”
[

 Brissette v. Westbury Life Insurance Co., [1992] 3 S.C.R. 87 (S.C.C.), at p. 94:

“The rationale of the policy which denies recovery to the felonious beneficiary is that a person should not profit from his or her own criminal act. It is consistent with this policy that a person should not be allowed to insure against his or her own criminal act irrespective of the ultimate payee of the proceeds.

disinherited.com is in complete agreement with this Ontario Court of Appeal decision and feel that it would be accepted as good law throughout the rest of Canada.

The basis of the public policy against benefiting from the proceeds of one’s crime was always based on the notion of criminal responsibility, and when that is lacking due to reasons of insanity, the public policy principle should not apply.