G.E.S Construction Limited (G.E.S) sought a declaration that Lloyd’s Underwriters (Lloyd’s) had a duty to defend and indemnify it in an action related to a renovation project.
G.E.S argued that Lloyd’s had waived its right to void the insurance policy or was estopped from doing so due to its actions.
The court dismissed G.E.S’s motion, finding no evidence of Lloyd’s unequivocal intention to waive the right to void the policy or that G.E.S had detrimentally relied on Lloyd’s actions.
Key Points:
Land Pride Group Inc., subcontracted by G.E.S, had liability insurance with Lloyd’s, but misrepresented its business activities, failing to disclose its involvement in demolition work.
Lloyd’s investigated the misrepresentation and considered voiding the policy but did not immediately communicate a final decision, leading to ambiguity.
The court found no clear intention by Lloyd’s to waive its rights or evidence of detrimental reliance by G.E.S on Lloyd’s actions.
The renewal of the policy and acceptance of premium payment by Lloyd’s were seen as tentative and not indicative of an unequivocal intention to waive policy voidance.
Outcome:
G.E.S’s motion was dismissed, and the court awarded costs of $20,000 in favor of Lloyd’s, payable by G.E.S within 30 days.
