Overview:
The case involved a roof collapse at Brock Stock Farm Ltd.’s hog barn. Brock sought coverage under an all-risk insurance policy for damages caused by wind and corrosion.
Legal Issues and Rulings:
- Concurrent Causation: The Court upheld the finding that wind and corrosion concurrently caused the collapse. However, coverage depended on whether the exclusions or exceptions applied.
- Corrosion Exclusion: The Court agreed with the trial judge that the policy’s corrosion exclusion did not apply because the truss system qualified as an "apparatus," making the exception for apparatus breakage applicable.
- Deterioration Exclusion: The Court found the damages fell within the exclusion for gradual deterioration. The judge failed to adequately assess whether any claimed damages constituted resultant damage (covered under an exception to the exclusion), requiring further fact-finding.
- Damages Award and Quantification: The Court set aside the trial court’s award of $328,196.91 for repairs and business interruption, as it did not differentiate between excluded damages and covered resultant damages.
Outcome and Costs:
The matter was remitted to the Court of King’s Bench to determine which damages, if any, qualified as resultant damage. The $5,000 in costs awarded to Brock Stock Farm Ltd. at trial was also set aside. No costs were awarded for the appeal due to divided success.
