The appellant, General Electric Canada Company, sought a declaration that its insurers had a duty to defend it regarding a request by the Ministry of the Environment (MOE) to delineate the source of TCE contamination on its former property.
The application judge dismissed the application, finding the MOE letter was a request for voluntary action and the costs incurred were compliance costs, not defence costs.
The Court of Appeal upheld the decision, applying the pleadings rule and concluding that the MOE letter did not constitute a claim that triggered the insurers' duty to defend.
