Jesse Harper

The plaintiffs, representing a class of small to medium-sized businesses, sought coverage under their business interruption insurance policies for losses sustained due to the COVID-19 pandemic and related civil authority orders.

The court held a common issues trial to determine whether the presence of the SARS-CoV-2 virus or government lockdown orders could cause 'physical loss or damage to property' within the meaning of the policies.

The court concluded that the virus does not physically alter or damage inanimate surfaces, and that the loss of use of the premises due to government orders does not constitute physical loss or damage.

Consequently, the court answered the certified common issues in the negative, finding no coverage under the business interruption provisions.

The moving parties sought an interlocutory injunction preventing the responding parties from excluding them from jointly operating several addiction-treatment medical clinics and pharmacies following a breakdown in their business relationship.

The applicants also sought directions regarding patient communications, access to clinics, and division of software and other assets.

Applying the test for interlocutory injunctions from R.J.R.-MacDonald Inc. v. Canada (Attorney General), the court held that the applicants failed to demonstrate irreparable harm if access to the clinics was denied.

The court found that the applicants had already established alternative clinic locations and were intending to compete with the respondents.

Instead of granting the injunction, the court ordered a structured disengagement process, including patient choice protections and limited directions regarding software and patient database access.