Castonguay Construction (2000) Ltd. v. Commonwealth Plywood Co., 2012 ONSC 3487 (CanLII)

Castonguay Construction (2000) Ltd. v. Commonwealth Plywood Co., 2012 ONSC 3487 (CanLII)

Eric Williams and Kelly Hart successfully represented a contractor, Castonguay, in a motion seeking to dismiss Castonguay’s third party claim against its engineer, Zenix, who argued that the claim ought to be precluded on the basis that if Castonguay had obtained the insurance required by way of its contract with the owner (Plaintiff), Zenix would have been a beneficiary of that insurance. 

The Court found that even if Castonguay had obtained the insurance, it was not was not plain or obvious that a claim for contribution or indemnity by Castonguay related to the services of Zenix would be precluded. Zenix was not afforded the benefit of the covenant to insure as it was not party to that agreement nor was it obvious that the parties to the contract intended to extend the benefits of insurance coverage to the losses involved. The motion to dismiss the claim as frivolous or vexatious was denied.

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