2 total
Insurer has a duty to defend property damage claim; pollution exclusion inapplicable to indoor chlorine leak.
The applicants sought a declaration that their insurer, CNA, had a duty to defend them in an underlying action for property damage caused by a liquid chlorine leak from their pool supply store into an adjacent unit.
CNA denied coverage, relying on the policy's pollution exclusion.
The court found that the pollution exclusion did not apply because the chlorine leaked into an adjacent indoor premises, not the natural environment, and the underlying claim was for property damage rather than environmental remediation.
The court declared that CNA has a duty to defend the applicants and awarded the applicants their defence costs incurred to date.
Appeal of arbitrator's decision to quash third-party summonses dismissed; client referral information protected by solicitor-client privilege.
The appellants appealed an arbitrator's decision to quash summonses issued to non-party lawyers in a commercial arbitration regarding referral fees.
The arbitrator had quashed the summonses on the basis that the requested client names and accounting information were protected by solicitor-client privilege.
The Superior Court dismissed the appeal, finding that the non-party lawyers were not bound by the arbitration agreement's expanded appeal rights, and under the Arbitration Act, 1991, there is no right of appeal for questions of mixed fact and law.
The court further held that the standard of review was reasonableness and the arbitrator's decision to quash the summonses and award costs was reasonable.
