The appellant tenants suffered $7,000,000 in water damage after a vandal opened a fire hose in an area used by the respondent independent contractor.
The tenants sued the contractor for negligence.
The contractor moved for summary judgment, arguing it was protected by a waiver of subrogation clause in the commercial lease between the tenants and the landlord, which extended to those for whom the landlord was 'in law responsible'.
The Court of Appeal upheld the summary judgment, finding that the landlord was in law responsible for the contractor due to an indemnity provision in the lease, and that the contractor met the Fraser River test to benefit from the clause as a third party.
