Westridge Construction Ltd. was insured through a commercial general liability policy by a number of insurers over various times. Westridge constructed a swine barn pursuant to a request for tenders issued by Genex Swine Group. The swine barn collapsed, and Westridge was sued by Genex for breach of contract in constructing a faulty swine barn, and for negligently failing to warn Genex about the unsuitability of the materials that were proposed in the construction of the swine barn. The commercial general liability policy clearly excluded damages resulting from the breach of contract, but the Saskatchewan Court of Appeal determined that the allegations in negligence constituted an actionable claim, and that Westridge was entitled to a defence under the terms of its commercial general liability policy.

17. June 2005 0
Westridge Construction Ltd. v. Zurich Insurance Co., [2005] S.J. No. 396, Saskatchewan Court of Appeal

A clear and unequivocal denial of benefits is a pre-condition for the commencement of the limitation period for disability insurance contracts. A communication by an insurer to an insured that a claim for disability insurance has been denied, but would be reviewed upon the provision of additional medical evidence does not postpone the commencement of the limitation period.

15. June 2005 0
Pekarek v. Manufacturers Life Insurance Co., [2005] B.C.J. No. 1344, British Columbia Supreme Court

When an insured car is damaged beyond repair and the insurer elects to take title to the salvage, the insurer is entitled to reduce its payment to its insured by the amount of the deductible in the policy. A five-panel bench of the Ontario Court of Appeal overturned McNaughton Automotive Ltd. v. Co-operators General Insurance Co. (2001), 54 O.R. (3d) 704 (ONCA) on the basis that McNaughton Automotive Ltd. was wrongly decided.

15. June 2005 0
Segnitz v. Royal & SunAlliance Insurance Co. of Canada (Appeal by Dominion of Canada General Insurance Co. and Economical Insurance Group), [2005] O.J. No. 2436, Ontario Court of Appeal

The British Columbia Court of Appeal held that the landlord (in a subrogated action by its insurer) was precluded by the terms of the lease from advancing a claim for fire damage against the tenant. The landlord had a covenant to insure the property. The tenant, who had contributed premiums to that insurance, was entitled to the benefit of that insurance.

06. June 2005 0
North Newton Warehouses Ltd. v. Alliance Woodcraft Manufacturing Inc., [2005] B.C.J. No. 1243, British Columbia Court of Appeal