The applicants purchased a property and subsequently received a municipal order to remediate unpermitted structures.
They made a claim under their title insurance policy.
The insurer invoked the policy's appraisal process, instructing the appraiser to calculate the 'Actual Loss' by valuing the land as if the unpermitted structures did not exist.
The applicants challenged this interpretation and the policy's appraisal process.
The court held that 'Actual Loss' must be calculated based on the value of the property subject to the government order, not as vacant land.
Furthermore, the court ruled that the appraisal process mandated by section 128 of the Insurance Act overrides the inconsistent process set out in the insurance policy.