Wynward Insurance Group v. MS Developments Inc.

Wynward Insurance Group v. MS Developments Inc.

Clause 6B(e)(ii) (freezing) and Clause 6B(o) (settling/expansion) operate to exclude the claimed losses because freezing and expansion were causal; Clause 6B(m) (earth movement) is ambiguous as to natural versus man‑made causes and is construed against the insurer so does not exclude coverage; Form 10801 equipment...

Source-derived case information.

Citation
2015 BCSC 324
Parties
Petitioner: Wynward Insurance Group; Respondent: MS Developments Inc.; Respondent: Yamas Taverna Ltd.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
4 March 2015
Procedural Posture
Insurance Coverage Declaration / Final Judgment (reasons for Judgment)
Outcome
Declaration for petitioner that it is not obliged to indemnify the respondents for the described damage
Legal Topics
Exclusion Clauses, All‑risk Policy, Equipment Breakdown, Causation, Contra Proferentem
Source Language
english
Insurance Law Contract Interpretation Property Damage Exclusion Clauses All‑risk Policy Equipment Breakdown Causation Contra Proferentem

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Parties

Wynward Insurance Group

Petitioner

MS Developments Inc.

Respondent

Yamas Taverna Ltd.

Respondent

Procedural Posture

Insurance Coverage Declaration / Final Judgment (reasons for Judgment)

Legal Issues

  1. 1 Whether exclusion clause 6B(e)(ii) (freezing) excludes coverage for the loss
  2. 2 Whether exclusion clause 6B(m) (earth movement) excludes coverage and whether it is ambiguous as to natural vs man‑made causes
  3. 3 Whether exclusion clause 6B(o) (settling/expansion) excludes coverage for the loss

Ratio Decidendi

Clause 6B(e)(ii) (freezing) and Clause 6B(o) (settling/expansion) operate to exclude the claimed losses because freezing and expansion were causal; Clause 6B(m) (earth movement) is ambiguous as to natural versus man‑made causes and is construed against the insurer so does not exclude coverage; Form 10801 equipment breakdown does not apply because the structural damage was indirect, not the direct result of an equipment accident; insurer entitled to declaration of no indemnity and costs.

Court Disposition

Declaration for petitioner that it is not obliged to indemnify the respondents for the described damage

Orders

  • Declaration that Wynward Insurance Group is not obliged to indemnify MS Developments Inc. and Yamas Taverna Ltd. for the damage described in the petition
  • Petitioner awarded costs on Scale B