Robert Clayton

The applicants brought a motion to oppose the confirmation of a Master's report regarding the amount owing under a boiler and machinery insurance policy issued by the respondent.

The applicants argued the Master erred in law by distinguishing between the valuation clauses in their property policies and the respondent's policy, and by accepting the respondent's valuation evidence which allegedly factored in depreciation improperly.

The Superior Court of Justice dismissed the motion, finding no error in the Master's conclusion that the respondent's policy required replacement with property of 'like kind, capacity, size and quality', which differed from the 'new for old' replacement cost coverage in the applicants' policies.

Following a Court of Appeal order, the Superior Court of Justice conducted a trial of an issue to determine the value of the plaintiff's townhouse as a two-storey unit versus a three-storey unit as of December 2, 2014.

The plaintiff had purchased the unit believing it was three storeys, but the third floor was illegally built into the common element space.

The court evaluated competing expert appraisal evidence, ultimately preferring the plaintiff's expert who conducted a thorough inspection and appropriately applied the direct comparison approach.

The court fixed the plaintiff's damages for the loss of the third floor at $465,000.