The appellant gas station owner suffered business interruption and equipment damage when a cracked fill-pipe allowed water to contaminate its underground fuel storage tank.
The respondent insurer denied coverage under an all-risks policy, arguing the loss was not fortuitous.
At trial, the judge granted the insurer's motion for non-suit, finding the appellant failed to prove the exact cause of the crack via expert evidence.
On appeal, the Divisional Court held the trial judge erred in law.
The appellant only needed to adduce evidence that the loss was not expected in the ordinary course of business, which it did through testimony from an experienced contractor and the owner.
The appeal was allowed and judgment was entered for the appellant.