A strata's insurance does not provide coverage to a strat member for social host liability
Application for a declaration that the defendant was entitled to coverage with respect to three claims in negligence as a social host pursuant to the policy held by the strata corporation where he resided . The application was dismissed.
Economical Mutual Insurance Co. v. Aviva Insurance Co. of Canada, June 4, 2010, British Columbia Supreme Court, I.H. Pitfield J.
Economical Mutual Insurance Company ("Economical") applied for a declaration that Aviva Insurance Company of Canada ("Aviva") was obliged to participate in the defence of claims made by three infant plaintiffs against Surinder Singh Rattan who was alleged to be liable for negligence as a social host. Aviva was the insurer of the strata corporation where Rattan resided. Rattan had a homeowner’s policy of insurance with Economical. At issue was whether Rattan was an insured under the strata corporation’s policy with Aviva.
Economical took the position that Rattan was an insured by virtue of s. 150 and s. 155 of the Strata Property Act, S.B.C. 1998, c. 43 (“SPA”). The SPA requires the strata corporation to obtain and maintain liability insurance to insure the strata corporation against liability for property damage and bodily injury.
The Court held that the strata corporation’s policy did not afford Rattan coverage except in respect of any business conducted by him and in respect of any liability he may have in his capacity as a stockholder in the strata corporation. As neither constituted the basis for the claims against Rattan, Aviva had no duty to defend or to participate in the defence of any of the three actions brought against him.
This case was digested by Kim Yee and edited by David W. Pilley of Harper Grey LLP.
