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Duty to Defend Applied Despite Exclusions for the Insured’s Work

January 19, 2018

Parkhill Excavating Ltd v Royal & Sunalliance Insurance Co of Canada (2016 ONCA 832) – Parkhill, designed and installed septic systems. It had commercial liability policies between 2004 to 2010 with a number of insurers. Parkhill’s septic systems were found to be defective and 36 septic systems had to be replaced. Parkhill was sued for negligence and a breach of contract including an allegation for defective design, installation, and supervision along with damages for the review/inspection of such design and installation work, and costs of rectification of the deficiencies.

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