Wal-Mart Canada Corp. sought a declaration that Intact Insurance Company had a duty to defend and indemnify it in a negligence action.
The underlying tort action involved a plaintiff tripping over cracked pavement in Wal-Mart's parking lot.
Intact argued that its policy, which named Wal-Mart as an additional insured under a contract with C.L. & Sons Property Maintenance, did not cover the claim as C.L. & Sons was only contracted for litter pick-up, not pavement repair.
The court found that the maintenance agreement's scope of work included reporting deficiencies affecting pedestrian safety, and the insurer's own description of C.L. & Sons' business operations included "Maintenance and inspection." Therefore, the court declared that Intact had a duty to defend Wal-Mart.
However, Wal-Mart's request to appoint its own counsel due to a potential conflict of interest was dismissed, with the court directing standard insurer procedures for separate counsel and adjusters for Wal-Mart and C.L. & Sons.
Costs were awarded to Wal-Mart.