The plaintiffs sued the defendants for property damage caused by an oil spill.
The defendant Bluewave brought a motion for partial summary judgment against the co-defendant Daniel Charles Transport for the costs of defending the action, arguing that Daniel Charles Transport breached a contractual obligation to obtain liability insurance naming Bluewave as an additional insured.
Daniel Charles Transport brought a motion to withdraw admissions and a cross-motion to dismiss Bluewave's crossclaim based on a Pierringer Agreement it had reached with the plaintiffs.
The court dismissed Daniel Charles Transport's motions, finding no justification to withdraw the admissions and that the Pierringer Agreement did not extinguish Bluewave's crossclaim for several liability.
The court granted Bluewave's motion for summary judgment, finding that Daniel Charles Transport breached its covenant to insure and that the pleaded allegations triggered a duty to defend.
Applying the principle of equitable contribution, the court ordered Daniel Charles Transport to pay 50% of Bluewave's past and future defence costs.