Good evening.

Following are this week’s summaries of the civil decisions of the Court of Appeal for Ontario.

APPLICATIONS FOR LEAVE TO APPEAL DISMISSED

38144 Ronald Baldovi v. Her Majesty the Queen 

(Man.)

Courts – Judges – Reasonable apprehension of bias

The Supreme Court’s decision in the Ledcor case (which held that “resultant damage” arising from faulty workmanship is not excluded by the faulty workmanship exclusion in a builders’ risk policy) was held not to allow for coverage for “resultant damage” arising from faulty workmanship under an all-risks property policy.

In 2012, the Ontario Ministry of the Environment issued a clean-up order against 13 former directors of Northstar Aerospace Canada. Northstar was bankrupt and the directors had to pay millions because the company’s D&O policy excluded pollution. A recent article by Greg Meckbach in Canadian Underwriter examines the effect that order has had on the commercial insurance industry in Canada.

Weighing in at the intersection of bankruptcy law and the doctrine of subrogation, the Ontario Court of Appeal has ruled that insurers are not entitled to commence subrogated claims in the name of bankrupt insureds.

The plaintiffs in the underlying action, Art and Wendy Douglas, owned property in Kingston where there was an oil leak in January of 2008. The defendants, who had supplied the oil, sent an environmental clean-up company to remediate the property after being alerted of the leak. The plaintiffs' insurer, State Farm Fire and Casualty Company (the "Insurer"), ultimately indemnified the plaintiffs in full and paid for repairs, remediation, additional living expenses of Mr. Douglas, personal property and related damages totaling more than $800,000.

Le 1er mars 2018, la Société d’assurance-dépôts du Canada (la « SADC ») a publié la mise à jour de son document d’orientation intitulé Droits de résiliation de contrats financiers admissibles en situation de règlement de faillite. Ce nouveau document d’orientation reflète les modifications apportées aux dispositions de la 

Good evening.

Below are the summaries of this week’s civil decisions of the Court of Appeal for Ontario.

Good afternoon,

There were several important civil decisions released this week.

Canada recently adopted a "bail-in" or recapitalization regime which enhances the federal Government’s toolkit for the orderly resolution of distressed member institutions determined to be non-viable. This bulletin outlines the Government’s powers to intervene and stabilize failing financial institutions, with a focus on the new amendments relating to bail-in powers and the treatment of derivatives contracts.

What You Need To Know