Acting as agent good way to gain experience, develop business

Acting as agent good way to gain experience, develop business

December 31, 2007

Toronto litigator Isabelle Eckler says a recent Supreme Court of Canada decision regarding an exclusion clause in a standard form contract took a very practical approach that may lead to fewer disputes in court over contract terminology.

In the matter of Ledcor Construction Ltd. v. Northbridge Indemnity Insurance Co., 2016 SCC 37, the top court suggested that when it comes to disputes over standard form contracts,

the standard of review is correctness rather than reasonableness.

The dispute involved a construction project where an office tower’s windows were scratched by the cleaners who used improper tools and methods in carrying out their work. As a result, the windows had to be replaced at a cost of $2.5 million. The building’s owner and the general contractor claimed the cost of replacing the windows against a builders’ risk insurance policy issued in their favour and covering all contractors involved in the construction. The insurers denied coverage on the basis of an exclusion contained in the policy for the “cost of making good faulty workmanship.”

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