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ARTICLE · 20 AUGUST 2014

Insurance Protection Extends Beyond The Lease

In Williams-Sonoma Inc. v. Oxford Properties Group Inc., Williams-Sonoma was a tenant at Yorkdale Shopping Centre when the mall was undergoing renovations.

CanadaReal Estate and Construction

In Williams-Sonoma Inc. v. Oxford Properties Group Inc., Williams-Sonoma was a tenant at Yorkdale Shopping Centre when the mall was undergoing renovations. The Landlord, Oxford Properties Group Inc., hired EllisDon Corporation ("EllisDon"), an independent contractor, to perform the construction work. During the course of their work, a vandal opened a fi re hose in a vacant area that was being used by EllisDon and, as a result, the Tenant's premises suffered extensive water damage of approximately $7 million. Williams-Sonoma sued EllisDon for breach of common-law and statutory duty owed to the Tenant by failing to properly secure the area where the fire hose was located. EllisDon brought a motion for summary judgment arguing that in the Lease the Tenant had waived its rights to claim against the contractor. The motion judge granted summary judgment and dismissed the Tenant's claims, holding that the benefit of the exculpatory clause in the Lease should extend to

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