Lee Samis

Farmers' Mutual Insurance Company (Lindsay) appealed an arbitration decision that found its commercial umbrella liability policy covered Statutory Accident Benefits Schedule (SABS) benefits for an all-terrain vehicle (ATV) accident.

The court, reviewing for reasonableness, found the arbitrator erred in interpreting the definition of 'automobile' within the Umbrella policy.

However, the court concluded that the ATV was covered under Farmers' standard Ontario Automobile Policy (OAP) via the 'Newly Acquired Automobiles' provision, due to the Umbrella policy's effect on the OAP's prerequisite that the insurer insure all automobiles owned by the insured.

Consequently, Farmers' appeal was dismissed, and the Minister of Finance's cross-appeal was allowed, affirming Farmers as the priority insurer responsible for SABS benefits.

Following the dismissal of a summary judgment motion brought by certain defendants, the plaintiff sought costs on a partial indemnity basis.

The responding defendants did not object to the quantum requested.

The court found the plaintiff’s requested costs reasonable and ordered payment accordingly.

The decision also corrected a typographical error in the court’s earlier reasons for judgment regarding which party amended a statement of defence.

Contractors and subcontractors moved for summary judgment seeking dismissal of a negligence and property damage claim arising from a water leak during mechanical system upgrades to a commercial building.

They argued that a builder’s risk insurance obligation contained in a long‑term land lease between the building owner and its landlord created a subrogation bar protecting them as third‑party beneficiaries.

The court held that the construction contract governing the work contained an “entire agreement” clause and expressly allocated responsibility for builder’s risk insurance to the contractor.

Because the defendants were strangers to the land lease and had neither relied upon nor bargained for its provisions, the lease could not override the later construction contract or confer a defence through the privity exception.

The insurance provision in the land lease therefore did not bar the plaintiff’s action.

Following a successful motion for security for costs, the defendant sought an award of costs for the motion on a partial indemnity basis.

The plaintiff did not dispute entitlement but argued the defendant achieved only partial success, claimed excessive costs, and requested that any award be in the cause rather than payable immediately.

The court held the moving party was substantially successful and rejected arguments that the award should be reduced for limited success.

While the amount claimed exceeded what would normally be expected for such a motion, the court accepted that additional work caused by late filings, expedited cross-examinations, and the complexity of the underlying action justified a higher award, subject to reduction for duplication of effort.

Costs were fixed and ordered payable within 30 days pursuant to the Rules of Civil Procedure.

The defendant insurer brought a motion for security for costs against a corporate plaintiff in bankruptcy alleging a conspiracy by insurers to destroy its accident-benefits clinic business.

The court considered the framework under Rule 56.01 of the Rules of Civil Procedure, including whether the plaintiff established impecuniosity, whether the claim had a good chance of success, and whether delay justified refusing the order.

The court found the plaintiff failed to demonstrate genuine efforts to obtain funding from creditors or shareholders and therefore did not establish impecuniosity.

The plaintiff also failed to demonstrate a good chance of success on the evidence presented, and the defendant had not delayed unreasonably in bringing the motion.

Security for costs was ordered in staged amounts.

The defendant landlord brought a motion for summary judgment to dismiss a subrogated claim by the plaintiff tenant's property insurer.

The claim arose from water damage caused by a burst pipe.

The landlord relied on an exculpatory clause in the commercial lease stating it was not liable for damage to the tenant's property 'however caused'.

The court dismissed the motion, finding that the lease only required the tenant to obtain public liability insurance, not property insurance, and that the scope and application of the exculpatory language raised genuine issues requiring a trial.