To obtain insurance benefits for defective workmanship a homeowner may have to sue the builder as opposed to claiming under their policy of insurance.
Two separate actions were heard together in this case. The Builder ("Aspen") sued for the balance due on a construction contract and the homeowner counterclaimed for defective workmanship and materials. Kingsway General Insurance Company, the homeowner warranty provider ("the Insurer"), sought indemnification from the builder for any sums it was ordered to pay the homeowner under the warranty. The Builder gave notice it would not appear at trial and its claim against the homeowner was dismissed for want of prosecution.
The homeowners were awarded judgment against the Builder and costs in the first action, and recovered damages against the Insurer in the second action. The Insurer was entitled to recover those costs against the Builder.
Aspen Enterprises Ltd. (c.o.b. Aspen Homes) v. Quiding,  B.C.J. No. 2755, October 21, 2008, British Columbia Supreme Court, L. Fenlon J.Continue Reading...