The appellants, environmental consultants, appealed a declaration that their insurers had no duty to defend them in an action alleging deceit, secret commissions, bid rigging, conspiracy, breach of contract, and negligence.
The Court of Appeal upheld the application judge's findings that claims relating to certain properties were excluded by the Design/Build exclusion, as the policy did not cover actual remediation work.
The Court also agreed that the negligence claims were derivative of the intentional torts and thus excluded by the Fraudulent Act exclusion.
The appeal was dismissed, with a minor variation to the wording of the declaration.