R. Walichnowski

The decision addresses whether an appraisal conducted under section 128 of the Insurance Act is binding on an insurance broker who was not a party to the appraisal process.

The plaintiffs sought a determination under Rule 21.01(1)(a) that the appraisal’s finding of value should bind all parties, including the broker, in subsequent court proceedings.

The court held that Rule 21.01 was not the appropriate procedure for this determination, as the issue was not fully settled in law, was not raised in the pleadings, and involved mixed questions of fact and law.

The motion was dismissed.

Following an interpleader application regarding funds held for a construction project, two creditors asserted priority claims which were dismissed.

Two other respondents took the lead in opposing these priority claims and subsequently sought their costs.

The court awarded $10,000 in partial indemnity costs to the successful respondents, to be paid equally by the unsuccessful creditors, with the award divided 60/40 in favour of the respondent who took the primary lead.

The applicant First Nation sought an interpleader order to pay a construction holdback fund into court due to multiple adverse claims from subcontractors, a garnishee, and the Canada Revenue Agency (CRA).

The court granted the interpleader, finding that the fund was neither the property of the general contractor (Razar) nor a debt payable to Razar, based on the contract terms and the Construction Act's trust provisions.

Consequently, the priority claims of the garnishee and CRA were dismissed as premature, as their claims depended on the fund being the general contractor's property.