Insurers had duty to defend insureds against claim for damages arising from alleged migration of contamination notwithstanding environmental and pollution liability exclusions in policies

13. February 2018 0
Insurance law – Commercial general liability insurance – Pollution exclusions – Duty to defend – Costs – Special costs West Van Holdings Ltd. v. Economical Mutual Insurance Co., [2017] B.C.J. No. 2670, 2017 BCSC 2397, British Columbia Supreme Court, December 29, 2017, DeWitt-Van Oosten J. The insureds were sued for damages allegedly due to the migration ...

Mortgagor’s claim to proceeds of fire loss paid out under standard mortgage clause took priority over CRA’s claim due to mortgagee’s tax liability

13. February 2018 0
Insurance law – Mortgages – Standard mortgage clause – Priority coverage Travelers Canada v. Elite Builders Inc., [2017] N.J. No. 432, 2017 NLTD(G) 214, Newfoundland and Labrador Supreme Court – Trial Division – General Division, December 22, 2017, G.L. Murphy J. A dispute arose between the Canada Revenue Agency (“CRA”) and a mortgage lender over ...

Insured’s soft-tissue injuries did not amount to “permanent serious impairment of an important physical, mental, or psychological function” and therefore award of general damages by jury disallowed

13. February 2018 0
Insurance law – Automobile insurance – Unidentified motorist – Statutory obligations – Damages – Permanent impairment, definition – Damages – Jury trials Nadarajah v. Aviva Canada Inc., [2017] O.J. No. 6571, 2017 ONSC 7522, Ontario Superior Court of Justice, December 18, 2017, P.J. Monahan J. The insured brought a claim for damages arising out of a motor ...

Appeal from partial summary judgment in which court made a declaration relating to the interpretation of a section of a banker’s comprehensive liability policy allowed

13. February 2018 0
Insurance law – Liability insurance – Directors and officers liability insurance – Interpretation of policy – Statutory provisions – Practice – Appeals – Summary judgments TD Bank N.A. v. Lloyd’s Underwriters, [2017] O.J. No. 6722, 2017 ONCA 1011, Ontario Court of Appeal, December 21, 2017, J.M. Simmons, D.M. Brown and J.M. Fairburn JJ.A. The insurer appealed ...

Despite insured’s insurable interest in property held as collateral pursuant to a promissory note, there was no coverage for the stolen property as a result of applicable exclusion clauses in the policy

13. February 2018 0
An insured has an insurable interest in property held as collateral pursuant to a promissory note. However, in the present case, there was no coverage for the stolen property as a result of applicable exclusion clauses in the policy. Insurance law – Property insurance – Insurable interest – Promissory estoppel – Exclusions – Damages Windsor v. ...

Failure to rely upon a defence in settling a statutory accident claim does not prohibit an insurer from relying on that defence in the tort claim

13. February 2018 0
Insurance law – Automobile insurance – Statutory Accident Benefits Schedule – Exclusions – Underinsured motorist – Uninsured motorist – Actions – Abuse of process – Practice – Settlement Wagner (Litigation guardian of) v. Fellows, [2017] O.J. No. 6329, 2017 ONSC 6979, Ontario Superior Court of Justice, December 5, 2017, A. Mullins J. The Minister of ...

Approval of infant settlement delayed because lawyer’s contingency fee agreement was unreasonable

10. January 2018 0
Insurance law – Practice – Settlement of action Fairweather v. Davies, [2017] O.J. No. 6180, 2017 ONSC 7051, Ontario Superior Court of Justice, November 27, 2017, J.K. Trimble J. The infant plaintiffs suffered minor injuries in a motor vehicle accident.  Their mother served as their litigation guardian.  Each plaintiff was to receive $12,500 pursuant to a settlement.  After their lawyer’s ...

Coverage for rental property excluded under vacancy exclusion despite insured living in a trailer beside the home while it was under renovation

10. January 2018 0
Coverage was excluded for a rental property under the vacancy exclusion despite the insured living in a trailer beside the home while it was under renovation. Insurance law – Homeowner’s insurance – Exclusions – “Resident” – “Vacant” – Definition – Terms of policy Taylor v. Co-operators General Insurance Co., [2017] A.J. No. 1232, 2017 ABQB 705, Alberta Court ...

Additional insureds entitled to appoint and instruct their own counsel due to inherent conflict of interest

10. January 2018 0
Additional insureds were entitled to appoint their own counsel due a conflict which arose because the mix of covered and uncovered claims meant that the additional insureds’ defence directly conflicted with the pecuniary interests of the insurers and there was a risk information obtained for defence purposes might be used against the additional insureds for ...

Insurer required to pay settlement agreement on behalf of insurer despite his having operated a snowmobile contrary to the terms of his criminal probation order

10. January 2018 0
An insured who operates a motor vehicle contrary to a criminal court order is nevertheless authorized to operate a motor vehicle pursuant to Statutory Condition 4(1). Insurance law – Automobile insurance – Statutory provisions – Exclusions – Appeals – Practice – Settlement of action Middleton v. Pankhurst, [2017] O.J. No. 5661, 2017 ONCA 835, Ontario Court of Appeal, November ...