The commercial general liability insurer (“Co-Operators”) of Matthews Pallet Recycling (“Matthews Pallet”) was successful in appealing a decision holding that it had a duty to defend claims advanced by passengers of an automobile involved in an accident with a truck owned by Matthews Pallet. The Court of Appeal held that allegations of “negligent business practices” and “negligent repair” were not sufficient to take the claims outside of the exclusion clause in the Co-Operators policy for claims arising out of ownership, use or operation of an automobile.
Unger (Litigation guardian of) v. Unger, [2003] O.J. No. 4587, Ontario Court of Appeal