904950 Ontario Limited v. Dominion of Canada General Insurance Company
J.G. Rivet Brokers Limited
Law Firm / Organization
Not Specified
The Corporation of the Municipality of West Nipissing
Law Firm / Organization
Not Specified
The Dominion of Canada General Insurance Company
Law Firm / Organization
Davidson Cahill Morrison LLP
904950 Ontario Limited
Law Firm / Organization
Miller Thomson LLP
Lawyer(s)

Chris T.J. Blom

Key Issues:

  • Whether the insurer (Dominion of Canada General Insurance) was responsible for covering water damage under the policy.
  • Interpretation of an exclusionary clause regarding water entering through basement walls.

Background:

  • A watermain burst, causing flooding in the respondent’s (policyholder's) property.
  • The insurance policy excluded coverage if water entered the property through basement walls.
  • The insurer denied coverage, arguing that the water entered through a pipe that transected the basement wall.
  • The motion judge ruled in favor of the respondent, finding that the pipe was distinct from the wall.

Court of Appeal’s Decision:

  • The appeal was dismissed, affirming that the exclusion clause did not apply.
  • The court found that:
    • A wall serves to enclose and protect a property, while a pipe enables fluid entry.
    • The policy did not explicitly exclude water entering through pipes.
    • Any ambiguity must be resolved against the insurer (contra proferentem rule).
  • The appellant failed to prove the exclusion clause applied.

Outcome:

  • Appeal dismissed.
  • Insurer must cover the damage.
  • Costs of $8,000 awarded to the respondent.
Court of Appeal for Ontario
COA-24-CV-0223
Insurance law
$ 8,000
Respondent