Recent Insurance Coverage Decisions From The Alberta Court Of Appeal

The Alberta Court of Appeal released two insurance coverage decisions on April 28, 2020 giving further direction and consideration to analysis of policies and coverage issues arising from same.

Intact Insurance Company v. Clauson Cold & Cooler Ltd. [2020 ABCA 161] addressed the issue of whether Intact had a duty to defend its insured Clauson. Clauson operated a cold storage business. Clauson's customers had suffered damage when goods stored in the warehouse had thawed. Those customers sued Clauson alleging breach of contract and negligent performance of contract and Clauson sought a defence from Intact. Intact refused to defend. The Master found that Intact owed Clauson a duty to defend the underlying action and this was affirmed by the Court of Queen's Bench. In another related decision the Court of Queen's Bench also awarded Clauson 40% of its actual solicitor and costs.