The applicant developer sought declarations that its insurers, Aviva and Northbridge, owed a duty to defend and indemnify it in a class action.
The class action alleged the developer negligently misrepresented that condominium units would include a heating system and storage locker, which were not provided.
The insurers denied coverage on the basis that the developer's failure to provide the items was an intentional business decision, not an 'occurrence' or accident.
The court agreed with the insurers, finding that the negligent misrepresentation claims were entirely derivative of the intentional breach of contract.
The applications for coverage were dismissed.
