In an insurance coverage trial arising from an oil spill in a mixed-use commercial building, the court addressed policy exclusions, proof-of-loss compliance, waiver, and quantification of property and business interruption damages.
The court held the insurer could not rely on late-raised proof-of-loss and appraisal defences given waiver language in the adjuster correspondence and pleading conduct, and rejected reliance on exclusions for pollution and mechanical or electrical breakdown on the evidentiary record.
The court accepted that extensive structural remediation was reasonable and necessary, and assessed repair costs using expert-supported mid-range estimates.
The court also awarded limited relocation and rental loss damages under policy terms, while declining consequential damages beyond the pleaded contractual claim.
Total assessed damages were $68,485, subject to potential adjustment based on settlement terms with a former co-defendant.
