It is often perceived that subrogation claims are barred in the
context of a construction loss. This is because typically the
applicable construction policies will contain waivers of
subrogation and list the various contractors as additional
insureds. However, a very recent decision by the Ontario Superior
Court demonstrates an example where subrogation was not precluded.
In Maio v. Mer Mechanical Inc., 2018 ONSC 4426, the
Defendant brought a summary judgment motion to have a subrogation
action dismissed due to the existence of a builder's risk
policy. The Court dismissed the motion and found that the action
was not barred.
Facts
The Plaintiffs had their dream house built over the course of
two years, and was completed in September 2009. They moved into the
house on November 1, 2009. Nine days later, a faucet on the main
floor became detached, resulting in a flood that caused over $3
million in damages. The Plaintiffs made a claim under their
homeowner's policy
