Commercial general liability insurer was under obligation to defend insured in respect to claims relating to allegedly defective valves in HVAC units, which resulted in flooding.

Versa Fittings and Manufacturing Inc. v. Berkley Insurance Co., [2015] O.J. No. 1378, March 19, 2015, Ontario Superior Court of Justice, G. Mew J.

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Commercial general liability insurers are under duty to defend insured in third party claims and to share the costs on a proportionate basis.

UPS Supply Chain Solutions Inc. v. Airon HVAC Service Ltd., [2015] O.J. No. 1360, March 18, 2015, Ontario Superior Court of Justice, W.M. Matheson J.

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The insured, who had blood alcohol limit three times the legal limit, was killed in a motor boat accident which also injured the passenger. The insurer had no duty to defend or indemnify the insured’s estate in the action brought by the passenger as there was no contractual obligation to defend, and the duty to indemnify was excluded because the motorboat was “operated illegally”.

Heffernan Estate v. Lloyd's Canada, [2015] O.J. No. 599, February 10, 2015, Ontario Superior Court of Justice, E.P. Belobaba J.

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An application by the insurer for a declaration that it had no obligation to defend or indemnify the insured based on a material breach was dismissed. The insured argued successfully that it was entitled to relief from forfeiture pursuant to s.98 of the Courts of Justice Act as the breach was one of imperfect compliance rather than non-compliance.

Aviva Canada Inc v. Gravenhurst Taxi Ltd., [2014] O.J. No. 5644, November 3, 2014, Ontario Superior Court of Justice, T.M. Wood J.

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The insurer was obligated to assume the defence of an additional named insured because all the plaintiff’s claims potentially arose out of or were related to the primary insured’s operations.

Sinclair v. Markham (Town), [2014] O.J. No. 4202, September 10, 2014, Ontario Superior Court of Justice, E.P. Belobaba J.

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Coverage was not excluded as against two insureds as a result of an alleged intentional act on the part of another insured, because the claim in negligence against the two insureds was distinct and not derivative of the intentional tort claimed against the other insured.

D.E. v. Unifund Assurance Co., [2014] O.J. No. 4271, September 11, 2014, Ontario Superior Court of Justice, D.G. Stinson J.

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Defendant certified financial planner was not covered under a general liability policy in respect to a claim arising from the plaintiffs' investment in a specific project, which turned out to be a fraudulent scheme.

Yanaky v. Arch Insurance (Canada), [2014] O.J. No. 3951, August 27, 2014, Ontario Superior Court of Justice, S.E. Firestone J.

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Insured's application for a declaration that the insurer owed a duty to defend regarding an action commenced by a contractor seeking damages for breach of contract, quantum meruit and unjust enrichment for unpaid work . The insured's application was dismissed because the pleadings did not contain a claim for a "wrongful act" within the meaning of the policy.

Thunder Bay Masonic Foundation v. Sovereign General Insurance Co. [2014] O.J. No. 3660, July 11, 2014, Ontario Superior Court of Justice, F.B. Fitzpatrick J.

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What constitutes a claim for the purposes of the definition of “claim” under a policy of insurance is determined according to an objective test in light of the reality of what the third party communicated to the insured by words or conduct. This does not always require a specific threat of legal proceedings. In this case, a reasonable insured, in the context of the complaint, would have concluded that the complainant intended to hold the insured liable when he simply stated that the insured should cover his costs.

Hants Realty Ltd. v. Travelers Guarantee Co. of Canada [2014] N.S.J. No. 330, June 25, 2014, Nova Scotia Court of Appeal, L.L. Oland, D.P.S. Farrar and P. Bryson JJ.A.

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Absolute pollution exclusion in commercial general liability policy precluded coverage for a claim arising from a spill of home heating oil.

Breton Petroleum Ltd. v. Aviva Insurance Co. of Canada, [2014] N.S.J. No. 298, June 16, 2014, Nova Scotia Supreme Court, K. Coady J.

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