The prior and pending litigation clause excluded coverage and there was no duty to defend the insured for claims arising out of prior litigation. Insurance law – Liability insurance – Wrongful acts – Duty to defend – Interpretation of policy Spinks v. Lloyd’s Underwriters, [2024] O.J. No. 34, 2024 ONSC 42, Ontario Superior Court of Justice, January 2, 2024, R. Centa J. The insured sought a declaration that the insurer had a duty to defend it in an action brought by the plaintiff, the insured’s former business partner. The insured and the plaintiff’s business relationship had broken down in 201 ..read more

There was no coverage for the cost of making those portions of property that were not damaged by an insured peril by-law compliant. Insurance law – All-risk insurance – By-law coverage – Latent defect – Interpretation of policy – Evidence – Expert evidence Osborne Towers Ltd. et al v. Aviva Insurance Company of Canada et al, [2024] M.J. No. 5, 2024 MBKB 4, Manitoba Court of King’s Bench, January 10, 2024, S.D. Greenberg J. Floors one to seven of the elevator shaft and mechanical duct shaft in the insured’s 26-story building suffered water damage after a fire hose system burst in the cours ..read more

The usual interpretation of contracts, which looks to the intention of the parties, is not in play when interpreting s. 5 of the Fair Practices Regulation, Alta.Reg. 128/2001. Insurance law – Life insurance – Interpretation of policy – Terms of policy – Beneficiaries – Conversion – Practice – Summary judgments – Leave to appeal Thomson v. Ivari, [2023] A.J. No. 1341, 2023 ABCA 369, Alberta Court of Appeal, December 18, 2023, F.F. Slatter, M.G. Crighton and W.T. deWit JJ.A. The insurer appealed a summary trial decision where the court held that a beneficiary of a life insurance policy coul ..read more

It is important for insurers to be sure of their coverage position before providing positive affirmations of coverage. There must be a meeting of the minds between all parties for an agreement to be valid. Insurance law – Automobile insurance – Priority coverage – Third parties – Lessors and lessees – Duty to defend – Practice – Leave to appeal Belair Direct Insurance Co. v. Continental Casualty Co., [2023] O.J. No. 5647, 2023 ONCA 834, Ontario Court of Appeal, December 18, 2023, J.M. Simmons, D. Paciocco and J.A. Thorburn JJ.A. The issues on this appeal arose from a priority/coverage dispute ..read more

A waiver of subrogation clause in the rules of a condominium owners’ association did not preclude claims against a unit owner for causing a fire Insurance law – Property insurance – Strata corporations – Subrogation – Right of insurer to subrogation Condominium Corp. No. 0840294 v. Oakley, [2023] A.J. No. 1225, 2023 ABKB 668, Alberta Court of King’s Bench, November 24, 2023, L.K. Harris J. A fire occurred at a condominium building, causing damage to individual units and common areas. The condominium corporation owned the common property but had delegated management to an ow ..read more

The insurer did not have a duty to defend its insured where the policy had a broad exclusion clause that covered the claims made against the insured. Insurance law – Commercial general liability insurance – Duty to defend – Exclusion – Interpretation – Third parties – Practice – Summary judgment Kelloway v. Eakins (c.o.b. Jack-O’s Sports Bar), [2023] O.J. No. 4698, 2023 ONSC 5925, Ontario Superior Court of Justice, October 24, 2023, K.C. Tranquilli J. On a motion for summary judgment alleging personal injuries acquired by a patron at a sports bar, the question arose wh ..read more

Conflicts in expert evidence weigh against suitability for summary trial, particularly where the conflicts leave the Court unable to conclude on an issue in dispute. Insurance law – Stock Throughput insurance – Coverage – Evidence – Practice – Summary judgments – Damages Valley Select Foods Inc. v. Lloyd’s Underwriters, [2023] B.C.J. No. 1318, 2023 BCSC 1146, British Columbia Supreme Court, July 6, 2023, A. Chan J. The insured sought a declaration of coverage from the insurer at a summary trial. The insured operates a facility that processes and freezes blueberries. In August 2019, it suffered ..read more

Excess liability insurer did not have an obligation to indemnify an insured because it did not consent to the settlement. Insurance law – Property insurance – Exclusions – Subrogation – Excess liability –  Practice – Settlement of action Greenwin Inc. v. St. Paul Fire and Marine Insurance Co., [2023] O.J. No. 3987, 2023 ONSC 5097, Ontario Superior Court of Justice, September 8, 2023, L.P. Merritt J. Following a fire at a high-rise building, a subrogated claim was brought by the building owner’s insurer against the building’s property manager. A multi-million dollar settlement was negotiat ..read more

The Court of Appeal dismissed the insurer’s appeal of a finding of coverage for an ATV owner who was sued when the ATV’s passenger was injured in an accident because the owner had provided specific permission to the driver and the driver’s breach occurred outside the parameters of the permission provided, which the owner could not have foreseen. Insurance law – Automobile insurance – Consent to drive – Practice – Leave to appeal Pridmore v. Drenth, [2023] O.J. No. 4017, 2023 ONCA 606, Ontario Court of Appeal, September 15, 2023, E.E. Gillese, M.L. Benotto and J.M. Copeland JJ.A. The insurer ap ..read more

The insured’s claim for punitive and aggravated damages for conduct relating to provision of statutory accident benefits was dismissed. The insured had settled her claim for benefits with her benefits provider and signed a release and could not therefore maintain her claim for punitive and aggravated damages against another party which had originally provided her benefits, as that claim arose from the denial of benefits. Insurance law – Automobile insurance – Accident benefits – Damages, punitive and aggravated – Practice – Summary judgments Imeri v. Laidman, [2023] O.J. No. 3946, 2023 ONSC 50 ..read more