British Columbia Court of Appeal Interprets Policy Definition in Favour of Insured

British Columbia Court of Appeal Interprets Policy Definition in Favour of Insured

In Honeywell International Inc. v XL Insurance Company Ltd., the British Columbia Court of Appeal ( “BCCA”) overturned an application judge’s decision. The BCCA found in favour of an appellant manufacturer seeking a defence under a liability policy placed in relation to a construction project (commonly known as a “wrap up policy”). The BCCA found that the manufacturer qualified as an insured under the policy and directed a trial of several other coverage issues not yet decided.

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BC Court of Appeal Upholds Coverage Denial Under Subsidence Exclusion

BC Court of Appeal Upholds Coverage Denial Under Subsidence Exclusion

In a recent decision, the British Columbia Court of Appeal (“BCCA”) interpreted a clause that excluded loss or damage caused directly or indirectly by “subsidence”. The court upheld the trial judge’s finding that the clause was unambiguously worded and clearly excluded coverage for the loss. In addition, the BCCA also agreed with the trial judge’s finding that the policy’s Extended Water Damage Endorsement did not extend coverage on the facts of the case.

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Ontario Court of Appeal Upholds Finding that Insurer Waived Policy Requirement

Ontario Court of Appeal Upholds Finding that Insurer Waived Policy Requirement

In a recent decision, the Ontario Court of Appeal had to determine whether the trial judge erred in finding that an insurer underpaid its insured for damaged personal property. The ONCA dismissed the insurer’s appeal, refusing to interfere with the trial judge’s assessment of the value of the insured’s claim or with his conclusion that the insurer had waived performance with a clause in the policy requiring the insured to provide a sworn “proof of loss” form.

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Ontario Court Applies Exclusion Clause to Bar Statutory Claim for Unpaid Wages and Benefits

Ontario Court Applies Exclusion Clause to Bar Statutory Claim for Unpaid Wages and Benefits

In a recent decision, the Ontario Superior Court of Justice (ONSC) considered the applicability of a prior acts exclusion within a directors and officers liability insurance policy for a claim brought against a company that later filed for protection under the Companies’ Creditors Arrangement Act (“CCAA”). The ONSC found that the claim pertained to events that preceded the policy period, which the endorsement excluded.

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Nova Scotia Court of Appeal Orders Interest Payable under Disability Policy Based on Required Medical Evidence Submitted

Nova Scotia Court of Appeal Orders Interest Payable under Disability Policy Based on Required Medical Evidence Submitted

In Peters v Great-West Life Assurance Company, 2024 NSCA 21, the Nova Scotia Court of Appeal (NSCA) held against the insured on an application brought to settle the pre-judgment interest amount for a claim arising from the death of the insured’s husband. At contention was the determination of when the cause of action arose respecting claims for accidental death benefits as this informed when the insurer’s obligation to pay pre-judgment interest began. The NSCA rejected the insured’s argument that the cause of action arose upon the denial of coverage following the insured’s initial demand for payment. Instead, the NSCA upheld the hearing judge’s determination that the cause of action arose when the insurer received evidence of accidental death and as, by law, a thirty-day grace period applied, the insurer’s obligation to pay pre-judgment interest began once the grace period expired.

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Step by Step appraisals – the New Kid on the Block

Step by Step appraisals – the New Kid on the Block

The Ontario Court of Appeal has ruled in Truscott v Co-operators General Insurance Company, 2023 ONCA 267, that the appraisal process under Ontario’s Insurance Act may be iterative. Where the parties limit the appraisal, the award that results need not decide the entire valuation dispute between the parties.

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BC Court of Appeal clarifies what parts of your home are “within your dwelling”

BC Court of Appeal clarifies what parts of your home are “within your dwelling”

In Gill v The Wawanesa Mutual Insurance Company, the British Columbia Court of Appeal was tasked with determining what parts of a home are “within the dwelling” when interpreting coverage provisions in a homeowner’s insurance policy. In overturning the decision below, the Court found that the trial judge appeared to interpret the policy from the perspective of an average person that was “erroneously disconnected from the language of the policy.” It held that, in interpreting the ordinary meaning of policy language, the Court must consider the policy from the perspective of an average person purchasing insurance.

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Manitoba Judge Finds for Insureds in Broker’s Negligence Claim

Manitoba Judge Finds for Insureds in Broker’s Negligence Claim

In 4268113 Canada Ltd. v. King et al., a Manitoba judge found an insurance brokerage and two employees liable in negligence for failing to obtain replacement cost insurance on an apartment building, as requested by the insured. The brokers’ submission to the insurer did not clearly request such coverage. The brokers failed to review the policy documents issued, which only covered the actual cash value of the property (“ACV”). After a fire, the insurer only paid the ACV of the damaged property. The brokers had to pay the plaintiffs the difference between ACV and replacement cost (i.e., the cost to repair the damage).

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