Course of Construction Policies and Consequential Economic Losses-Acciona v. Allianz and Claims for Increased Expense
Much ink has been spilled on the BC courts’ decisions inAcciona Infrastructure Canada Inc. v. Allianz Global Risks US Insurance Company But the lion’s share of the commentary has focussed on the defect exclusion at issue in that case, known as the LEG 2/96 exclusion, and the finding that it did not exclude damage to defectively constructed property.Garnering less attention are the courts’ rulings with respect to the economic claims presented by the insured.The plaintiff sought over $4 million for “increased sub-contractor costs” proximately caused by the damage to the property. But that part of the claim was rejected by BC’s courts as not triggering coverage in the first instance.
This case stands for the proposition that property policies such as a course of construction (builders risk) policy will not (subject to specific policy wordings, of course) provide coverage for consequential, economic losses.
Concurrent Causation and Insurance for Catastrophic Weather Events
One of the thorniest issues to deal with in insurance coverage matters is that of “concurrent causation”. The problem was illustrated again on the national stage last year when Albertans experienced massive overland flooding that also resulted in sewer back up. Typically, homeowner’s policies in Canada do not cover damage from flooding but many will include an endorsement for sewer back up. The events of 2013 presented insurers and insureds with the problem of how to handle losses directly caused by a sewer back up that is, itself, caused by an excluded flood.
Helping the witness help the court
Ontario, B.C. rulings differ widely over the propriety of reviewing drafts of expert reports
The History and Treatment of Damages in Canada
The law of damages in Canada has undergone unique changes over the past 50 years which have helped shape the actions of Canadian society. The development of three areas of damages in Canada is of particular interest: non-pecuniary, punitive, and aggravated damages.