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ARTICLE · 06 SEPTEMBER 2011

You Are Becoming Commercially Unreasonable!

Gowling WLG
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In 2000, Foster Wheeler contracted with the Greater Toronto Airports Authority Association Inc. ("GTAA") to supply and install four steam boilers in one of its facilities (the "Supply Contract").

CanadaLitigation, Mediation & Arbitration
Heather Gray
Heather Gray
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In 2000, Foster Wheeler contracted with the Greater Toronto Airports Authority Association Inc. ("GTAA") to supply and install four steam boilers in one of its facilities (the "Supply Contract"). During installation, one of the steam boilers exploded damaging the boiler and other GTAA property. GTAA was fully compensated for the damage by its insurer who proceeded to commence a subrogated claim against Foster Wheeler and its sub-contractors.

Foster Wheeler moved for summary judgment on the basis that even if it was negligent, the GTAA action could not succeed in light of its covenant to insure in the Supply Contract. The Supply Contract obligated GTAA to maintain "All Risks" Course of Construction Insurance naming Foster Wheeler as an additional insured:

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