Fire Distinguisher: Court Clarifies Liability For Third-Party Arsonists

A recent decision determined that construction companies cannot be liable for the actions of third-party arsonists. So long as the property owner is making "normal and ordinary use of the property" in that there is "no unusual danger in the nature of a fire hazard", they will not be liable for the tortious actions of a third-party arsonist. The decision also suggested that the standard of care is similar; while there were failings in the defendant corporation's security measures, they did not need to be perfect.

Background

The corporations that acted as defendants in this action, Carlisle Inc., Carlisle GP Holdings Inc., POV (Encore) Inc., Carlisle Management Inc., and Carlisle Developments Inc. ("Carlisle"), owned and were developing a condominium complex in south Edmonton called Rutherford Landing. Rutherford landing consisted of three buildings, each in a different stage of construction. Condominium corporation No. 1023525 ("102") operated a fully constructed