Part 28 published on 01/11/09
Question as to insurers duty to defend under commercial general liability policies. Leave to appeal to the Supreme Court of Canada granted
Four separate actions were brought against Progressive Homes Ltd. by the B.C. Housing Management Commission, concerning separate condominium projects built by Progressive. The actions alleged significant damage due to water penetration resulting from defects in the buildings’ envelopes.
Progressive argued that Lombard had a duty to defend the actions (on Progressive’s behalf) under various commercial general liability policies. The lower Court held that there was no coverage under the particular policies and therefore no duty to defend. The lower Court decision was upheld on appeal. [See Condo Cases Across Canada, Part 26, May 2009.]
Progressive Homes Ltd. sought, and was granted, Leave to Appeal to the Supreme Court of Canada.
[Editorial Note: Hopefully the Supreme Court of Canada will provide much-needed guidance respecting coverage under comprehensive general liability insurance policies for claims related to construction deficiencies and resulting damage.]