An employee of a daycare facility operated by the appellant municipality sustained a workplace injury from a slip and fall on a wet floor.
The municipality leased the daycare space from the respondent school board.
The school board was sued and brought a third party claim against the municipality, seeking a declaration that the municipality must defend and indemnify it under the terms of their commercial lease.
The motion judge ordered the municipality to defend and indemnify the school board.
On appeal, the municipality challenged the interpretation of the lease provisions governing insurance obligations and indemnification.
The Court of Appeal upheld the motion judge's decision, finding that the municipality's obligation to maintain comprehensive general liability insurance constituted an assumption of the relevant risk of loss, and that the lease provisions, read together, clearly allocated the risk to the municipality.