Reid Crowther & Partners Ltd. v. Simcoe & Erie General Insurance Co., (1991) 70 Man.R.(2d) 36 (CA)

• Judge: O'Sullivan, Lyon and Helper, JJ.A.
• Court: Court of Appeal (Manitoba)
• Case Date: January 15, 1991
• Jurisdiction: Manitoba
• Citations: (1991), 70 Man.R.(2d) 36 (CA)

Reid Crowther v. Simcoe & Erie (1991), 70 Man.R.(2d) 36 (CA)

MLB headnote and full text

Reid Crowther & Partners Limited (plaintiff/appellant) v. Simcoe & Erie General Insurance Company and Reed Stenhouse Limited (defendants/respondents)

(Suit No. 321/90)

Indexed As: Reid Crowther & Partners Ltd. v. Simcoe & Erie General Insurance Co.

Manitoba Court of Appeal

O'Sullivan, Lyon and Helper, JJ.A.

January 24, 1991.

Summary:

An engineering consulting firm negligently supervised installation of water and sewer lines in a municipality and was held liable for remedial work. The firm claimed the damages from its insurer under a Claims Made policy. The insurer denied liability because the claim was not made within the policy period.

The Manitoba Court of Queen's Bench, in a decision reported at 66 Man.R.(2d) 142, dismissed the firm's claim. The firm appealed.

The Manitoba Court of Appeal allowed the appeal.

Insurance - Topic 7628

Professional liability insurance - Scope of coverage - Policy period - Claims made - Meaning of - An engineering consulting firm negligently supervised installation of municipal water and sewage systems - The firm was insured under a "claims made" policy, providing indemnity when a "claim" was made against the insured within the policy period, regardless of when the loss occurred or was discovered - The insurer settled a claim during the policy period - A second claim was for further damage discovered after the policy expired - The Manitoba Court of Appeal held that there was one continuing act of negligence - Damages identified in the future flowing from the same negligence for which a claim was made were covered under the policy.

Cases Noticed:

National State Bank, Elizabeth, N.J. v. American Home Assurance Co. (1980), 492 F. Supp. 393, refd to. [para. 14].

St. Paul Fire and Marine Insurance Company v. Guardian Insurance Company of Canada, [1983] I.L.R. 6601; 2 O.A.C. 109 (C.A.), refd to. [para. 14].

Defrancesco v. Stivala, [1989] I.L.R. 9819 (Ont. S.C.), refd to. [para. 14].

Wright Engineers Ltd. v. U.S. Fire Ins. Co. (1986), 19 C.C.L.I. 74 (B.C.C.A.), dist. [para. 16].

Counsel:

L.M. French, for the appellant;

D.I. Marr and C.G. Wright, for the respondents.

This appeal was heard before O'Sullivan, Lyon and Helper, JJ.A., of the Manitoba Court of Appeal on January 15, 1991. The decision of the Court of Appeal was delivered by Helper, J.A., on January 24, 1991.