The appellant appealed the dismissal of its application for judgment against the respondent for $7,451,662.65 under a settlement agreement.
The parties had contracted for construction of the western portion of the Eglinton Crosstown Tunnel.
The respondent was required to obtain third-party liability insurance, with the appellant as an additional insured.
The appellant was responsible for paying 100% of deductibles for third-party claims.
After substantial performance, the parties settled outstanding contract disputes with mutual releases that included a clause preserving rights and obligations regarding insurance policies.
The respondent withheld $6.4 million from the final settlement payment, claiming it was due for outstanding deductible claims.
The appellant argued the settlement released it from deductible obligations.
The motion judge dismissed the application, finding the release did not release the appellant from its deductible obligations.
The Court of Appeal upheld this decision, finding the release language clearly preserved all rights and obligations relating to insurance policies, including deductible payment obligations.