The appellants appealed the dismissal of their action for indemnity under their home insurance contract for water damage.
The motions judge had found the damage was caused by ongoing seepage of ground or surface waters due to pre-existing wear and tear and construction defects, which was expressly excluded under the policy.
The Court of Appeal upheld the motions judge's decision, noting it was open to him to accept the expert evidence regarding the cause of the damage.
The court also dismissed a preliminary motion for recusal of one of the appellate judges.