This is an appeal concerning an insurance claim for recoverable depreciation following a fire that destroyed a commercial building.
The insured, Champion, and insurer, Intact, had a settlement agreement with a 24-month replacement deadline and an automatic forfeiture clause for recoverable depreciation if not met.
A subsequent agreement conditionally waived this deadline, contingent on Champion closing a specific property purchase.
Champion failed to close that purchase and sought to substitute another property.
The motion judge found Intact had waived Champion's failure to close and granted summary judgment.
The Court of Appeal reversed, holding that forfeiture was automatic and Intact was not required to give notice.
The Court found Intact did not waive Champion's default and dismissed Champion's cross-appeal for relief from forfeiture or damages, as Champion had not completed replacement.