The Sovereign General Insurance Company v Walker, 2011 ON CA
597 (Released September 19, 2011)
The respondent Marie Walker slipped and fell at the Power Centre
in Burlington, Ontario, and sustained serious and permanent
injuries. The Walkers sued Emshih Developments Inc.
("Emshih"), the owner, and Sun Shelters,
the maintenance company retained to clear the property of snow and
ice. Sun Shelters was bankrupt and did not defend the action but
Emshih notified its insurer, The Sovereign General Insurance
Company ("Sovereign"), of the claim.
Sovereign declined to participate.
The Walkers settled the action with Emshih and obtained a
judgment against Sun Shelters for $100,000 in damages and related
relief. The Walkers then brought an action against Sovereign under
s. 132 of the Insurance Act, which allows a third party to recover
against an insurer where the insured has failed to satisfy a
judgment for damages. Alternatively, they relied on s. 129 of the
Act, which
