This decision concerns the interpretation of an insurance policy following a flood at the City of Thunder Bay’s wastewater pollution control plant.
The central issue was whether increased repair costs required by building code upgrades were subject to a $10 million sub-limit.
The court found that the policy was unambiguous and that the sub-limit applied to all code compliance costs, rejecting the City’s argument that broader coverage was available.
The court also addressed costs, awarding the insurers $25,000.
