Minox Equities Ltd. and Winnipeg Condominium Corporation No. 106 v. The Sovereign General Insurance Company (Manitoba Court of Queen's Bench)

The Plaintiffs claimed for costs incurred to remediate mould in the units, under their all-risks property insurance policy.  The insurer denied coverage.  The insurer contended that the mould was inevitable (due to defective design and construction and resulting build-up of humidity and moisture levels, as well as the failure to rectify those problems at an earlier date).  The insurer also said that the mould damage was excluded and had not occurred within the policy period. 

The Court ruled in favour of the Plaintiffs.  The Courts reasons included: 

• The policy contained no specific exclusion for mould damage.
• The other exclusions in the policy did not apply.
• The presence of mould was fortuitous, rather than inevitable.
• The damage occurred during the policy period.
• The limitation period had not expired.