Defining Detection: The Fight Over Coverage In Paramount v. Chubb Insurance

The case of Paramount Resources Ltd. v. Chubb Insurance Company of Canada, 2024 ABCA 266centers on a dispute over insurance coverage following the release of condensate from a LVP pipeline at the Resthaven facility near Grand Cache, Alberta. Paramount Resources Ltd. and ConocoPhillips (BRC) Partnership ("Conoco") each held a 50% interest in the subject facility.

Paramount sought coverage under its pollution liability insurance policies issued by Chubb Insurance Company of Canada, Lloyd's Underwriters, and Royal & Sun Alliance Insurance Company of Canada (collectively, the "Insurers"). Chubb's policy was the primary policy, with Lloyd's and RSA providing excess coverage. These Policies required that any release of pollutants be "detected by any person" within 720 hours of its commencement to trigger coverage.