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Dec
2016
Noteworthy

Ontario Court of Appeal Affirms the Duty to Defend Alleged Consequential Damage

Author Michael S. Teitelbaum

Recently, in Parkhill Excavation Ltd. v. Royal & Sunalliance Insurance Co. of Canada, 2016 ONCA 832, the Court of Appeal for Ontario reversed the motion judge’s finding there was no duty to defend a construction deficiency claim in respect of the installation of septic systems. At first instance, Healey J. had found there was no de-fence obligation as the subcontractor exception to the “Your Work” exclusion did not apply because the subcontractor was a supplier and not a contractor. The Court of Appeal held that because consequential damages were alleged, the Your Work exclusion could not apply, a de-fence was owed, and it was unnecessary to go on to con-sider the Subcontractor Exception to the exclusion.

Nov
2016
Noteworthy

Dirty Windows Help to Clarify Appellate Review of Standard Form Contracts

Author Michael S. Teitelbaum

Just when you thought the judicial approach to the appellate standard of review for Canadian contract interpretation had been addressed, the Supreme Court of Canada (“SCC”) rendered its decision in Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co., 2016 SCC 37 (“Ledcor”) on September 15, 2016. Ledcor has created an exception to the Court’s significant decision in Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53 (“Sattva”), which had held that the appropriate appellate standard of review for con-tract interpretation was the deferential one of palpable and overriding error.

Sep
2016
Noteworthy

The Scope of an Insurer's Duty to Defend an Additional Insured

Author Michael S. Teitelbaum

Two recent Ontario Court of Appeal decisions have, to a considerable extent, clarified the obligations of an insurer that has agreed to provide liability coverage to persons or entities as additional insureds.

Jul
2016
Noteworthy

Thresholds and Deductibles; The Struggle Continues

Author Richard F. Horak

In a recent edition of Noteworthy (Volume 2 of 2016) we referenced a number of recent cases in which the courts have dealt with these issues. Two more recent decisions are wor-thy of discussion. 

May
2016
Noteworthy

The Ontario Court of Appeal addresses the limitation period for claiming defence costs

Author Michael S. Teitelbaum

In Daverne v. John Switzer Fuels Ltd., 2015 ONCA 919, the Ontario Court of Appeal dealt with the issue of what limitation period applies with-in the context of an insurer’s duty to defend. The successful appeal found that the insured’s claim was barred by the limitation found in the subject liability policy of one year. In rendering their decision, the three-person panel considered an issue that has not been comprehensively addressed in Ontario.

Apr
2016
Noteworthy

Recent Threshold Decisions

Authors Greg Bailey and Jay M. Silber

This article outlines short notes about 4 recent threshold decisions.

Apr
2016
Noteworthy

Deductibility of Future Collateral Benefits: Two Helpful Decisions for the Defence

Author Richard F. Horak

While it has long been understood that Defendants in motor vehicle accident cases are entitled to a deduction for collateral benefits (past and future), in recent years case law has limited the availabil-ity of these deductions. However, two recent decisions have clarified the law in a significant manner.

Feb
2016
Noteworthy

Monk v. Farmers' Mutual Insurance Co. (Lindsay): Further Lessons in Policy Language and Interpretation

Author Michael S. Teitelbaum

In Monk v. Farmers' Mutual Insurance Co. (Lindsay), [2015] ONCA 911, the Court of Appeal reversed the motion judge's decision that the "faulty workmanship" exclu-sion applied to both direct and indirect damages. The Court ruled that the motion judge's interpretation of the exclusion was overly broad and that the damage to the insured's prop-erty was covered by the policy whether or not the damage constituted resulting damage from faulty workmanship.

Dec
2015
Noteworthy

Update on PJI and Deductibles – Substantive or Procedural

Author Richard F. Horak

Although we continue to await a definitive answer from the Court of Appeal, cases are being decided in which Judges are forced to make rulings on these issues (see the Noteworthy Issue 4 of 2015). One such decision is Cobb v. Long Estate, 2015 ONSC 6799, a decision of Justice Belch.

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