Sean Van Leeuwen

The plaintiffs and their insurer, Allstate, brought a motion for default judgment against an uninsured snowmobile driver who struck the plaintiff pedestrian.

The plaintiffs had previously settled their first-party claims with Allstate and assigned their rights against the other defendants to the insurer.

The court declined to grant the requested relief, finding that additional materials were required to clarify the nature of the claims being advanced, the steps taken to discontinue against the Crown, and the evidence supporting the quantum of indemnity and costs sought.

The insured sought a declaration that the insurer was required to pay increased rebuilding costs following a total-loss residential fire where reconstruction required upgrades mandated by the Ontario Building Code.

The insurer relied on a policy exclusion denying coverage for increased costs caused by the operation of any by-law regulating construction.

The court held that the exclusion clause applied only to municipal by-laws and not to provincial regulations such as the Building Code.

Because the increased costs arose from Building Code requirements rather than a by-law, the exclusion did not apply.

The court ordered the insurer to pay the additional costs associated with the mandated upgrades.