Insurer’s Application Under Rule 3.1(2) in Alberta was Appropriate

19. August 2014 0

It is appropriate for insurer to seek contribution from other insurers by filing an originating application pursuant to Rule 3.2(1) of the Alberta Court of Queen’s Bench Rules.

Northbridge Indemnity Insurance Corp. v. Intact Insurance Co., [2014] A.J. No. 611, June 10, 2014, Alberta Court of Queen’s Bench, W.P. Sullivan J.

Northbridge Indemnity Insurance Corp., which issued a Wrap Up Policy to Lake Placid Properties and others with respect to the construction of an apartment building, filed an originating application pursuant to Alberta Court of Queen’s Bench Rule 3.2(1) seeking contribution from Intact, which had issued an insurance policy to Lake Placid Investments which provided certain liability coverage and Zurich, which issued an insurance policy to AMEC, one of the additional insureds under the Wrap Up Policy issued by Northbridge.

During construction, a sink hole was discovered which caused significant damage to an adjacent condominium building. The owners of the adjacent building commenced several actions against the parties involved in the construction of the project insured by Northbridge. Intact and Zurich took the position that there might be a substantial factual dispute and Northbridge should not have proceeded by way of originating application. The court concluded that there was no substantial dispute on the facts and that Northbridge had proceeded in the appropriate manner.

This case was digested by Cameron B. Elder and edited by David W. Pilley of Harper Grey LLP.

To stay current with the new case law and emerging legal issues in this area, subscribe here.