The Ontario Court of Appeal held that commencing a lawsuit to
enforce an insurance claim becomes "appropriate" as soon
as it is legally possible under the policy to do so and not a later
date when the insurer denies the claim.
Nasr Hospitality Services Inc. v. Intact
Insurance, 2018 ONCA 725, per Brown J.A.
Facts + Issues
This is the appeal from the trial decision
reported in the April 2018 edition of Defence +
Indemnity. The respondent, Nasr Hospitality Services Inc.
owned commercial premises in Niagara Falls (the Premises) from
which it intended to operate a restaurant. The Premises was insured
through a commercial insurance issued by the appellant, Intact
Insurance.
On January 31, 2013, Nasr discovered water damage to the
Premises caused by a ruptured bathroom pipe and called a broker,
who immediately reported the water damage to Intact. Intact
assigned a company to attend and report to any damage and Nasr
signed a work authorization for emergency
