Part 22 published on 01/05/08
Insurer unsuccessful on appeal
The condominium corporation obtained judgment against a contractor for damages resulting from the contractor’s defective work. Lombard was the contractor’s insurer, under a comprehensive liability insurance policy. At the lower Court, Lombard was found to be liable under its insurance policy. [See Condo Cases Across Canada, Part 18, May 2007.]
Lombard appealed to the Ontario Court of Appeal. The Appeal was dismissed. The Court of Appeal held that the foundation damage was damage to “third party property”, rather than damage to the contractor’s “own work”. The Court of Appeal also concluded that the damage resulted from an “occurrence” under the terms of the policy. The Court of Appeal accordingly held that the damage was covered by Lombard’s policy.