The defendant subcontractor brought a motion for partial summary judgment against the third-party general contractor for defence costs.
The general contractor had breached its contractual obligation to obtain a wrap-up insurance policy for the construction project.
The court found that had the policy been obtained, there was a mere possibility that the claims against the subcontractor for property damage would have been covered, triggering a duty to defend.
The court ordered the general contractor to reimburse past defence costs and to retain an independent lawyer to act as an adjuster to approve future defence costs.
