Damage caused to windows by cleaning company during construction of building was not covered by all-risk policy containing exclusion for cost of making good faulty workmanship.

Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co., [2015] A.J. No. 338, March 27, 2015, Alberta Court of Appeal, J.E.L. Côté, J. Watson and F.F. Slatter JJ.A.

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The plaintiff was unable to recover for losses suffered as a result of her lawyer’s negligence because (1) the lawyer was not practicing law and thus was not insured at the time the loss was discovered, and (2) the lawyer did not report the potential loss to the insurer while the policy was in effect. The Alberta Court of Queen’s Bench held that there was a reasonable and appropriate gap in coverage, and the Master’s decision was upheld.

Sawyer v. Canadian Lawyers Insurance Assn., [2015] A.J. No. 239, February 26, 2015, Alberta Court of Queen's Bench, J. Strekaf J.

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Motion by the insured for a declaration of coverage. The insured owned half of a duplex with a dirt floor. The question was whether the policy covered the cost of remediating the dirt floor after it had been contaminated with oil. The court held that remediation was covered under the policy as the definition of “dwelling” included the floor, albeit one made of dirt.

Snow. v. Royal & Sun Alliance Insurance Co. of Canada, [2015] N.S.J. No. 53, January 13, 2015, Nova Scotia Supreme Court, P.J. Murray 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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Summary judgment application to determine the meaning of the word “load” in the following exclusion clause:  “The weight of the load exceeding the registered lifting or supporting capacity of any machine.”  The insured owned an articulating boom lift that was damaged when the operator used the boom in an attempt to lever the lift out of mud in which it was stuck.  The court concluded the word “load” meant more than the weight in the manbasket and would include external resistance being applied to the lift or overall force to which the lift was being subjected.  Accordingly, the exclusion clause was engaged and the insured’s claim was dismissed.

Aspen Interiors Inc. v. Wawanesa Mutual Insurance Co., [2015] S.J. No. 25, January 5, 2015, Saskatchewan Court of Queen's Bench, R.S. Smith J.

 

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The insured was granted relief from forfeiture for failing to meet the contractually imposed deadline for submitting a claim for long term disability benefits.

Dube v. RBC Life Insurance Co., [2015] O.J. No. 42, January 7, 2015, Ontario Superior Court of Justice, M.A. Garson J.

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Soil that is contaminated by a heating oil spill is not insured property under a policy of property insurance. Further, the doctrine of imminent peril does not apply to the clean-up costs as the risk of oil vapours is not an imminent peril and damage is not inevitable.

Garden View Restaurant Ltd. v. Portage La Prairie Mutual Insurance Co., [2014] N.S.J. No. 675, December 22, 2014, Nova Scotia Supreme Court, M. Stewart 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 defendant commenced third party proceedings against the insured's insurer seeking a declaration that the insurer owed a duty to defend and indemnify it against the plaintiff’s claims. The plaintiff subsequently discontinued its claim against the insured. The insurer brought an application pursuant to rule 21 for an order dismissing the third party claim on the basis it disclosed no reasonable cause of action. The insurer argued the true nature and substance of the plaintiff's claim did not concern the operations of the insured. The application was dismissed because the pleadings alleged the defndant was liable for breach of contract as a result of the negligence of the insured. This fell squarely within the insurance coverage.

Innvest Real Estate Investment Trust (c.o.b. Travelodge Airport North Bay) v. 1328151 Ontario Inc. (c.o.b. Paul Davis Systems of North Bay Nipissing), [2014] O.J. No. 4799, October 10, 2014, Ontario Superior Court of Justice, M.G. Ellies J.

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Where a person is not a named insured on an automobile policy and that person operates a vehicle listed on that policy, the policy holder for the vehicle is not absolutely liable under section 258 of the Insurance Act, R.S.O. 1990, c. I.8, if that person is involved in a motor vehicle accident. Section 258 will not be engaged unless it is established that the operator of the vehicle was an insured under the policy. To be an insured under the policy, the operator of the vehicle must have been either a named insured or a person driving with the named insured’s consent at the time of the accident, and the vehicle being driven must have been owned by a named insured.

Brown v. Belair v. Wawanesa, [2014] O.J. No. 4638, October 2, 2014, Ontario Superior Court of Justice, S.E. Firestone J.

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