The plaintiff, Breaking Ground Drilling and Blasting Inc., sued Hanslip Demolition for unpaid invoices.
Hanslip Demolition counterclaimed for $6 million due to alleged deficient work and issued a Third Party Claim against Lloyd's of London Limited (Lloyds) and Intact Insurance Company, seeking indemnification as an additional insured under Breaking Ground's policy.
Lloyds brought a motion to strike the Third Party Claim for disclosing no reasonable cause of action.
The court dismissed the Third Party Claim against Lloyds, finding that Hanslip Demolition's claims (for defence costs and indemnity for the main action, and for its counterclaim losses) were not covered by the commercial general liability policy, which only covered bodily injury, personal injury, property damage, or advertising liability caused by an occurrence.
The court also found that Hanslip Demolition could not trigger the policy for property damage to the quarry (not its property) and that the conditions for a direct action against the insurer under s. 132 of the Insurance Act were not met as no judgment had been obtained against Breaking Ground.
