Claims of deceit will generally not give rise to insurance coverage

No coverage under homeowner policy for claim against vendor for fraudulent misrepresentation leading to sale of home.

Chrysanthis v. Ali, [2013] O.J. No. 1239, March 18, 2013, Ontario Superior Court of Justice, D.F. Baltman J.

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Subcontractors may not benefit from a third party lease.

Defendant construction company could not benefit from a clause in a lease between the plaintiff lessee and a third party lessor requiring plaintiff to obtain construction insurance to defeat a claim by the plaintiff against the defendant arising out of damage to the plaintiff's building caused by the defendant and its subcontractors.

Bank of Nova Scotia v. Lockerbie & Hole Industrial Inc., [2013] O.J. No. 1167, March 14, 2013, Ontario Superior Court of Justice, E.M. Morgan J.

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An insurer may be added as a defendant after the expiration of an applicable limitation period

Application to add insurer providing uninsured motorist coverage as defendant allowed after expiration of applicable limitation period.

Tomescu v. Sarhan, [2013] O.J. No. 1059, March 11, 2013, Ontario Superior Court of Justice, T.A. Bielby J.

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An insurer who has complied with the express terms of the contract may still breach its duty of good faith and fair dealing

The Court of Appeal substantially allowed the appeal from a motion decision striking out numerous claims in a proposed class action relating to the sale and administration of four types of life insurance policies. The plaintiffs' claims for breach of duty of good faith and fair dealing and for deceit and fraud were not mere reiterations of the plaintiffs' claim for negligent and fraudulent misrepresentation and should be allowed to stand. Their claim for breach of contract was based on ambiguious terms in the contract and was likewise allowed to stand. A claim relating to settlement entered into by the defendant insurer was struck out on the basis that no relief was being claimed.

Kang v. Sun Life Assurance Co. of Canada, [2013] O.J. No. 768, February 25, 2013, Ontario Court of Appeal, J.I. Laskin, M. Rosenberg and S.T. Goudge JJ.A.

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An insured who is not authorized by law to operate a motor vehicle may be entitled to uninsured automobile insurance under his or her policy

The defendant insurer sought dismissal of a claim for coverage under the uninsured automobile provisions of a policy. The claim had been denied on the basis the insured was in breach of the statutory conditions of the policy. The insurer brought a motion for summary dismissal and the motion was dismissed. The insurer appealed and the Court of Appeal upheld the motion decision, holding that the statutory conditions did not apply to uninsured automobile coverage. The Court of Appeal also held that the Limitation Act applied to a cross-claim brought by the Minister of Finance under the Motor Vehicle Accident Claims Act, but stayed the application to have the cross-claim dismissed.

Bruinsma v. Cresswell, [2013] O.J. No. 770, February 22, 2013, Ontario Court of Appeal, J.I. Laskin, H.S. LaForme and A. Hoy JJ.A.

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Damages associated with the loss of marijuana plants is limited to $1,000 per plant

An action for coverage under a homeowner's insurance policy to recover the full value of legally cultivated marijuana plants was dismissed. Coverage was limited to $1000 per plant as per the extended coverage provisions of the policy. The fact that the plants were not grown for "landscaping" purposes did not bring them under the general contents coverage under the policy.

Stewart v. TD General Insurance Co., [2013] O.J. No. 955, March 7, 2013, Ontario Superior Court of Justice, J.A. Ramsay J.

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There is no statutory duty obligation a broker to offer an insured optional income replacement benefits

A claim against an insurance broker for the failure to advise about optional coverage. The action was dismissed.

Godina v. Tripemco Burlington Insurance Group Ltd., [2013] O.J. No. 613, February 12, 2013, Ontario Superior Court of Justice, R.B. Reid J.

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An injured person is unable to obtain uninsured motorist coverage from an insurer solely on the basis of the entitlement to statutory accident benefits from that insurer

A motion was brought by the Motor Vehicle Accident Claims Fund to determine whether Aviva Insurance was obliged to provide uninsured motorist coverage to the plaintiff. The Court determined that the plaintiff was not entitled to uninsured motorist coverage from Aviva.

McKenzie v. Zhang, [2013] O.J. No. 638, February 11, 2013, Ontario Superior Court of Justice, E. Frank J.

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An insurer may have an obligation to defend a claim after it's limits have been exhausted

Application for a declaration that pursuant to the Insurance Act, R.S.O. 1990, c. 1.8 and Ontario’s Standard Automobile Policy (“SAP”) the insurer had no obligation to defend its insured against a claim after paying its policy limits to the plaintiff. The application was dismissed and the insurer was ordered to continue to bear the cost of defending the insured.

Jevco Insurance Co. v. Malaviya, [2013] O.J. No. 394, January 29, 2013, Ontario Superior Court of Justice, E.M. Morgan J.

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An insurer may not be able to set aside default judgement taken against an insured

Dismissal of a motion by the insurer (statutory third party) to set aside summary judgment on liability against its insureds (the defendant driver and the defendant owner) because the insurer was attempting a collateral attack on a prior order refusing to set aside default judgment against one of the insureds (the defendant owner).

Roy v. Lapointe, [2013] O.J. No. 557, February 4, 2013, Ontario Superior Court of Justice, M.P. Eberhard J.

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