Those involved in building projects should always be alert to court decisions dealing with insurance, or insurance clauses in contracts, even if those contracts are not building contracts. Those decisions will inevitably impact the interpretation of insurance clauses in building contracts. So the decision of the Ontario Court of Appeal in Deslaurier Custom Cabinets Inc. […]
Continue Reading →Breach Of Covenant To Obtain Fire Insurance Coverage For Another Party Means No Claim May Be Made Against That Party: Ontario Court Of Appeal
Posted by: Construction Law Canada
Faulty Workmanship Exclusion In A Builders’ Risk Policy Excludes Only The Cost Of Re-Doing The Faulty Work: Supreme Court Of Canada
Posted by: Construction Law Canada
In Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co., 2016 SCC 37, the Supreme Court of Canada has issued a definitive decision about the scope of the “faulty workmanship” exclusion in Builders’ Risk insurance policies. The Supreme Court has held that the clause only excludes coverage for the cost of re-doing the faulty work, and […]
Continue Reading →Faulty Materials Or Workmanship Exclusion In Insurance Policy Does Not Exclude Resulting Damage: Ontario Court Of Appeal
Posted by: Construction Law Canada
Summary In its recent decision in Monk v. Farmers’ Mutual Insurance Company (Lindsay), the Ontario Court of Appeal has held that the exclusion for faulty materials or workmanship in an owner’s property insurance contract does not exclude the insured’s right to recover the resulting damage that the faulty materials or workmanship has caused. This is […]
Continue Reading →Should The Interpretation Of A Standard Form Contract Be Reviewed According To A Standard Of Legal Correctness?
Posted by: Construction Law Canada
In its decision in Sattva Capital Corp. v. Creston Moly Corp., 2014 SCC 53, [2014] 2 S.C.R. 633, the Supreme Court of Canada held that the interpretation of a contract should have regard to the facts surrounding the making of the contract. For this reason, the review by a court of an arbitrator‘s decision interpreting […]
Continue Reading →Claims By Equipment Supplier And Consultants Fall Within All Risk Insurance Umbrella
Posted by: Construction Law Canada
Claims By Equipment Supplier And Consultants Fall Within All Risk Insurance Umbrella The owner and general contractor on a building project typically provide an “insurance umbrella” for the project. That umbrella will usually be referred to in the insurance clause in their building contract. That clause will provide that the owner or contractor will take […]
Continue Reading →Can Conduct Relating To A Mediation Lead To A Higher Costs Award?
Posted by: Construction Law Canada
In Ross v. Bacchus, the Ontario Court of Appeal recently set aside an order of the trial judge awarding a higher level of costs because of the defendant’s conduct at the mediation. This decision emphasizes that, absent proof of bad faith, courts will be reluctant, at least in Ontario, to impose costs awards relating to […]
Continue Reading →Does Construction Insurance Apply To The Suppliers To The Project?
Posted by: Construction Law Canada
An important issue in construction projects is the identity of the persons covered by the insurance coverage which applies to the project. If one of the parties– say the owner or the contractor – takes out the insurance, does it cover subcontractors or suppliers? Typically the courts have been reluctant to find that the project […]
Continue Reading →When Is Faulty Workmanship Excluded From A Builders’ Risk Policy?
Posted by: Construction Law Canada
One of the most difficult issues in construction law is the proper interpretation of an exclusion for faulty workmanship in a Builders’ Risk policy. The amounts in issue can be huge and if the exclusion applies, the absence of insurance can be serious. Take for example the recent Alberta decisions in Ledcor Construction Limited v […]
Continue Reading →Is Loss Due To An Inevitable Event Covered By Property Damage Insurance?
Posted by: Construction Law Canada
A continuing issue relating to property damage insurance is whether loss which is bound to occur due to an unknown fault or defect in the structure is covered by the insurance policy. The policy may be a builders’ risk insurance policy maintained during a building project or an all-risk insurance policy maintained by a business. […]
Continue Reading →