The plaintiffs, DK Manufacturing Group Ltd. and S.G. Investments Group Ltd., sought insurance proceeds and damages for bad faith from Co-operators General Insurance Company following a fire and water damage incident.
Co-operators brought a motion for partial summary judgment, arguing that the claims for insurance monies were resolved by a binding appraisal process and that a one-year contractual limitation period barred other claims.
The court found that Form AB, containing contractual statutory conditions including a one-year limitation period and appraisal process, applied to both policies.
The appraisal awards were binding, dismissing claims for further insurance monies.
However, the one-year contractual limitation period did not apply to the extra-contractual bad faith claims, which are governed by the two-year limitation period under the Limitations Act, 2002.