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April 13, 2004 |
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Defective Manufacture is Not an Accident or Occurrence Under General Liability Policy The Supreme Court of Canada dismissed a motion for leave to appeal in Celestica Inc. v. ACE INA Insurance.
"Commercial law - Insurance - Comprehensive general liability policy - Defective components being installed by insured in power modules of photocopiers - Insured taking corrective action - Definition of "occurrence" - Whether the manufacture and sale of a defective item by the insured, where the insured does not know that the item is defective, may be an occurrence within the definition of occurrence in the policy - Whether the Court of Appeal erred in finding that the loss sustained by the Applicant was not caused by an occurrence, as defined in the insurance policy issued to the Applicant by the Respondent."
"[31] There are good policy reasons for refusing to find that defective design or manufacture can constitute an accident. In Privest Properties Ltd. v. Foundation Co. of Canada (1991), 6 C.C.L.I. (2d) 23 at 72 (B.C.S.C.), Drost J. stated:
There is a policy reason for this. If the insurance proceeds could be used to pay for the repairing or replacing of defective work and products, a contractor or subcontractor could receive initial payment for its work and then receive further payment from the insurer to repair or replace it. Equally repugnant on policy grounds is the notion that the presence of insurance obviates the obligation to perform the job initially in a good and workmanlike manner."
(Michael Girard was counsel for the successful respondent on the leave to appeal application)
11:28:50 PM 
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VOIP Comes to Canada Vonage today began offering service in Canada. Vonage uses high speed internet connections to support telephone service (VOIP - Voice-over-Internet Protocol).
7:02:49 PM
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© Copyright 2005 Michael Girard.
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Shoot the Stars
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| Mar May |
Canadian Courts
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