Part 43 published on 01/09/13
Developer-Builder’s insurer must defend claim by condominium corporation
Condominium Corporation No. 0322472 brought a claim against the developer-builder, Canalta, for breach of contract and negligence resulting in alleged deficiencies and/or defects in relation to the condominium units which had been sold by Canalta. The alleged deficiencies related to the design and construction of the condominiums, which allegedly resulted in failure of a water main and failure of a roof system.
Canalta asserted that its commercial general liability insurer, Dominion, was obligated to defend the claim asserted by the condominium corporation.
The Court agreed that Dominion was obligated to defend the claim, under the developer-builder’s commercial general liability (CGL) insurance policy. The Court said:
…I find that it is possible that the claim falls within the CGL policy, and that the exclusions either do not apply or if they do, then exceptions to the exclusions apply.