Background:
Frederick Ronald Swaine and Catherine Isabel Swaine owned a home in Winnipeg, purchased in 1975. In 1983, they addressed settling issues by installing concrete piles. In 2017, a burst pipe caused water damage while they were away, and further structural damage was observed. The Swaines claimed this damage was due to a sinkhole or subsidence under their home. They sought coverage under their “All Risks” insurance policy with Intact Insurance Company, which excluded damage caused by earth movement or settling. Intact denied the claim, citing these exclusions.

Legal Arguments/Issues:
The main issue was whether the structural damage resulted from a “sudden occurrence,” which the plaintiffs claimed should be covered, or from long-term settling, as the defendant argued, which was excluded under the policy. Another issue was whether Intact acted in bad faith by failing to investigate the claim thoroughly.

Court Findings:
The court found that the damage resulted from long-term soil desiccation and settling, not a sudden event like a sinkhole. Therefore, the exclusion clause applied, and Intact was not liable to cover the damages. The court also determined that Intact did not act in bad faith.

Damages and Costs:
The plaintiffs' claim was dismissed. No damages were awarded to the plaintiffs, and no specific costs were awarded to Intact Insurance. If the parties could not agree on costs, they could seek an appearance to make submissions.