Ontario Superior Court Of Justice Applies Pollution Exclusion In Denying Coverage Application

The Ontario Superior Court of Justice (the "Court"), sitting in Kitchener, recently ruled on a coverage application in Kin v. Ecclesiastical et al 2022 ONSC 1655¹. The applicant sought coverage from Lloyd's and the Court dismissed the application its in entirety.

Factual background

Kin Canada ("Kin") is a charitable organization. Kinsman Club of Oshawa ("KCO") is a separate corporate entity and is an additional insured under Kin's commercial general liability policies with both Lloyd's and Ecclesiastical Insurance Office Public Company Limited ("Ecclesiastical").

KCO sold a property to the plaintiff in the underlying action. The plaintiff sued KCO alleging that two underground fuel storage tanks (USTs) were not disclosed at the time of the sale in 2005. The presence of the tanks was not discovered until 2018.