How are defence costs allocated among multiple insurance
companies that each insured a defendant over various periods? This
issue was addressed in St. Paul Fire & Marine Insurance Company v. AIG
Insurance Company of Canada et al, 2019 ONSC 6489.
Facts
Lockerbie & Hole Eastern Inc. ("Lockerbie") is a
construction company. Its predecessor was contracted by York
University to build a steam heating and cooling pipe system (a
mechanical system) in 2002.
York University alleged that construction defects in the
mechanical system led to various failures requiring repairs and
remediation after construction, including specific failures in July
2003, February 2005, and April 2011, culminating in a leak in the
cooling system in December 2013.
