An insurer was time barred from bringing a loss transfer claim against a second insurer by operation of the doctrine of laches.

Zurich Insurance Co. v. TD General Insurance Co., [2014] O.J. No. 2550, May 27, 2014, Ontario Superior Court of Justice, S.N. Lederman J.

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A dispute arose over the application of an indemnity clause in a contract between a golf tournament host and golf course owner. The plaintiff was injured in a golf cart accident. When the indemnity clause was read as a whole, it obliged the golf tournament host to indemnify the golf course owner for the golf course owner's own negligence.

Neely v. MacDonald, [2014] O.J. No. 2285, May 12, 2014, Ontario Superior Court of Justice, F.L. Myers J.

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A plaintiff’s covenant to insure the defendant signifies the assumption of risk of damage for which it sues. This covenant barred the plaintiff’s insurer from bringing a subrogated claim against the covenantee defendant for the damage. Notwithstanding a lack of contractual privity, the covenant also barred the plaintiff from bringing a subrogated claim against the other defendants on the basis that the plaintiff's claim was derivative of the same incident and the same damage as the claim against the covenantee.

Sanofi Pasteur Ltd. v. UPS SCS, Inc. [2014] O.J. No. 2076, April 30, 2014, Ontario Superior Court of Justice, E.M. Morgan J.

 

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The insurer denied coverage for water damage to the insured’s basement because it was caused by “continuous or repeated seepage”, which was an excluded risk. The court found that the insurer was incorrect in determining this to have been the cause of the water damage, and held that the exclusion did not apply to the loss. The court did not award punitive damages because the conduct of the insurer in denying the claim was only misguided and could not be descibed as malicious, oppressive or highanded.

Moffat v. Wawanesa Mutual Insurance Co. [2014] O.J. No. 2124, April 25, 2014, Ontario Superior Court of Justice, B. Babcock Deputy J.

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Pollution exclusion in homeowner's policy may not apply to circumstances where sound insulation releases noxious gas that renders the home uninhabitable.

Robinson v. Primmum Insurance Co., [2014] O.J. No. 487, January 31, 2014, Ontario Superior Court of Justice, A.D. Grace J.

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An insurer was not entitled to rely on a contractual limitation period shortening the statutory limitation period because the wording for when the limitation period commenced was not clear. The limitation period did not start to run until after the appeals process had been exhausted.

Kassburg v. Sun Life Assurance Co. of Canada, [2014] O.J. No. 1090, March 7, 2014, Ontario Superior Court of Justice, M.G. Ellies J.

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Application on the issue of whether the insurer had a duty to defend the insured in legal proceedings alleging damages caused by defective work. The insured’s plumbing work was completed while the insurance policy was valid. Years later, the plumbing system failed and caused damage. The insurer argued the pleadings did not allege facts showing that an occurrence causing damage took place before the expiry of the policy and in the alternative, the damage was excluded from coverage as a result of the "your work" exclusion. The insurer's application was dismissed because there was an occurrence during the policy period and the insurer could not demonstrate that the exclusion clause clearly applied.

Co-operators General Insurance Co. v. Wawanesa Mutual Insurance Co., [2014] N.S.J. No. 111, January 27, 2014, Nova Scotia Supreme Court, M.J. Wood J.

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Although the insured’s claim for indemnification under a commercial general liability insurance policy for the cost of destroying a contaminated product sold by the insured to the third party was for a fortuitous loss, it did not fall within coverage as the insured did not prove the event that caused the contamination.

Westaqua Commodity Group Ltd. v. Sovereign General Insurance Co., [2014] B.C.J. No. 284, February 18, 2014, British Columbia Supreme Court, J. Steeves J.

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Application by insurer for declaration that homeowner's policy which excluded the cost of making good faulty material or workmanship did not apply to loss in circumstances where statement of claim alleged faulty workmanship was denied on basis that the cause of loss might not be limited to faulty workmanship.

Hallett v. Fitzpatrick, [2013] N.J. No. 438, December 19, 2013, Newfoundland and Labrador Supreme Court, C. Thompson J.

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Errors & Omissions Insurer entitled to decline a defence to its insured, a lawyer, on the basis of a notwithstanding clause which allowed it to decline to defend an insured on the basis of a reasonable investigation rather than on the basis of the pleadings.

Juroviesky and Ricci LLP v. Lawyers Professional Indemnity Co., [2014] O.J. No. 40, January 6, 2014, Ontario Superior Court of Justice, W.M. Matheson J.

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