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Water Damage Affects 28 Floors of a Residential Building – Drain Manufacturing Defect – The Insurance Contract and the Insurer’s Obligation to Defend

September 19, 2016

Syndicat des copropriétaires Le Crystal de la montagne v. Le Crystal de la montagne, s.e.c., [2016] QCCS 3218.

The Court was seized of a Wellington Motion by the defendant-in-warranty and in sub-warranty, Les Tuyaux Logard inc. (“Logard”), which was seeking to force its insurer, Société d’assurance générale Northbridge (“Northbridge”) to assume its defence.

On May 29, 2012, following torrential rains, the building managed by Syndicat des copropriétaires Le Crystal de la montagne (the “Co-op”), which was constructed in 2006, suffered considerable damage as a result of the drains’ breakage and/or inability to discharge the excess water. The Co-op initiated proceedings against the various players involved in the construction process, one of which went on to initiate a warranty claim against Logard as the drain manufacturer, and against Emco Corporation as the drain distributor. The latter party also initiated a sub-warranty claim against Logard.

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