Kelly Anne Hart

The National Gallery of Canada retained Lafleur de la Capitale Inc. for landscaping and maintenance services and required Lafleur to add it as a named insured under its comprehensive general liability policy with Intact Insurance Company.

The Gallery was added as an additional insured only insofar as its legal liability arose vicariously out of Lafleur's operations.

When a Lafleur employee died while performing maintenance work at the Gallery's premises, two actions were commenced against the Gallery by the employee's spouse and family members.

The Gallery applied for a declaration that Intact had a duty to defend.

The application judge granted the application in brief reasons that failed to address exclusion clauses or the nature of the allegations in the statements of claim.

The Court of Appeal found the application judge's reasons inadequate and did not permit meaningful appellate review, allowing the appeal and remitting the application for a new hearing.

The applicants brought a motion to add Cindy Ravary as a defendant and to amend their Statement of Claim.

The court granted the motion, allowing the addition of Ms. Ravary and the proposed amendments, with the exception of the allegation of conspiracy.

The court found that Ms. Ravary had not demonstrated prejudice and that the proposed causes of action were prima facie meritorious.

Following the dismissal of a Rule 21.01(3)(d) motion to strike a third party claim as frivolous, vexatious, and an abuse of process, the court addressed the quantum of costs payable.

The responding party sought partial indemnity costs exceeding $13,000, while the moving parties argued the hours claimed were excessive and invoked the principle of proportionality under Rules 1.04(1.1) and 57.01(1)(0.b) of the Rules of Civil Procedure.

The court considered the complexity of the privity and insurance coverage issues, the significance of the motion’s potential impact on the broader litigation, and evidence of duplication in preparation time by junior counsel.

Balancing proportionality and the importance of the issues, the court fixed partial indemnity costs at a reduced amount.

Costs of $7,000 plus disbursements and taxes were ordered payable forthwith.

Engineering consultants brought a motion under Rule 21.01(3)(d) of the Rules of Civil Procedure to dismiss a third party claim for contribution and indemnity arising from alleged design deficiencies in a warehouse concrete slab.

The moving parties argued that the contractor’s covenant in the main construction contract to obtain wrap‑up liability insurance barred any claim against them and that they could rely on a principled exception to the doctrine of privity to benefit from that covenant.

The court held it was not plain and obvious that the alleged losses would have been covered by the contemplated insurance or that the contract intended to extend such benefits to the engineers.

The pleadings disclosed a potential claim for contribution and indemnity relating to defective design and workmanship.

The motion to dismiss the third party claim as frivolous, vexatious, or an abuse of process was therefore dismissed.