Joanna F. Reznick

The appellant commercial tenant suffered property damage from a flood and sued the respondent landlord for the uninsured balance of its loss.

The motion judge granted summary judgment dismissing the action, finding that the lease required the tenant to maintain all-risks insurance and barred claims against the landlord for property damage.

On appeal, the tenant argued summary judgment was inappropriate, the expired lease terms did not apply, and the landlord retained liability for failing to repair the premises.

The Court of Appeal dismissed the appeal, holding that summary judgment is appropriate for waiver of subrogation cases, the overholding tenant remained bound by the lease terms, and the lease shifted the risk of damage from an insured peril to the tenant regardless of the landlord's conduct.

The appellant appealed a summary judgment dismissing its claims.

The underlying dispute involved a subrogated claim by the appellant's insurer against the respondents, who were contractors on a diamond mine project.

The Court of Appeal dismissed the appeal, finding that the contracts required the appellant to obtain insurance for the benefit of its contractors and included a waiver of subrogation.

Applying principles of contract interpretation, the court held that the appellant had waived liability for losses covered by the policy, thereby extinguishing the insurer's right of subrogation.