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Construction Site Insurance Policy – Windows damaged by the contractor who was in charge of cleaning them in advance of the building’s delivery. Despite the exclusion of expenses incurred to correct workmanship defects, is the insurer liable for the damages? The Supreme Court of Canada rules.

January 20, 2017

Ledcor Construction Ltd. v. Société d’assurance d’indemnisation Northbridge, 2016 SCC 37

Station Lands Ltd. (“Station Lands”), the owner of an office building that was recently constructed in Edmonton, and Ledcor Construction Limited (“Ledcor”), the general contractor responsible for erecting the building (collectively, the “Insureds”), are appealing a judgment by the Alberta Court of Appeal where the Court reversed a first-instance decision ordering the Insureds’ insurers to pay for the replacement of the building’s windows, under the terms of an exclusion clause in the construction site insurance policy. The appeals were allowed by the Supreme Court of Canada.

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