The insured discovered water damage to its commercial premises on January 31, 2013 and reported it to its insurer the same day.
The insurer made certain payments under the policy and engaged in settlement discussions while continuing to investigate.
On July 22, 2013, the insurer denied the claim due to policy violations and exclusions.
The insured commenced an action on April 22, 2015.
The insurer moved for summary judgment arguing the action was statute-barred under the two-year limitation period.
The motion judge dismissed the motion, finding the limitation period did not begin to run until July 2013 when the insurer formally denied the claim.
The Court of Appeal allowed the appeal, holding that the motion judge erred in using the insurer's conduct after notification to displace the statutory presumption that the insured knew a proceeding was an appropriate means to remedy its loss as of February 1, 2013.
The court granted summary judgment dismissing the action as statute-barred.