The good faith framework: A notion with blurry outiline limitations

INTRODUCTION The purpose of the rules governing public calls for tenders is to ensure the fairness of the contract award process according to the theory of contracts A and B1. Two objectives are involved here: 1) fairness between bidders and 2) the best management of public funds by the award of contract B to the lowest compliant bidder. A more …

Loss in a Condominium: Who is to Pay for the Depreciation?

A recent decision1 regarding the application of depreciation is worth better knowing. This case especially concerns the relationship between a co-ownership syndicate, a co-owner and her liability insurer. It concerns two fundamental principles of our indemnification system in Quebec: 1) complete indemnification of the victim and 2) the unjust enrichment of the person causing the prejudice. In 2018, the rules …

Collecting sales taxes : our civil courts will not allow it

October 2023 – In Construction VX Inc. c. Lainco Inc.[1], the Superior Court of Quebec confirmed that sales taxes had to be subtracted from the amount of compensation a corporate entity or a subrogated insurer is allowed to receive. As the principle of fair compensation is deeply rooted in Quebec’s legal framework (especially when it comes to the payment of …

The Insured Is Not Always Whom You Think

March 2023 – The concept of insurable interest[1] provides an answer to the two (2) essential questions that an insurer must answer before settling a claim: 1) determining the object of the insurance coverage and 2) identifying the insured. The answers to these two (2) questions do not always automatically come to light but are intimately linked together to the …

Corroded flexible pipe: who is responsible?
Finally, a clear answer to this question!

February 2023 – Case law Summary – The case La Capitale assurances générales inc. v. Construction Mckinley inc., Société d’assurance générale Northbridge, Céramique Décor M.S.F. inc., Lisa Duval et Reckitt Benckiser (Canada) inc., 200-17-030650-204 On February 14, 2023, the Superior Court, written by the Honorable Alain Michaud, J.C.S., ruled on the issue and determined the responsibility arising from the breakage …

The Court increases the pressure on subrogatory proceedings

April 2022 – Sécurité Nationale compagnie d’assurance c. Bel Bro inc., 2022 QCCS 723 (Granosik, j.) The Superior Court of Québec was asked to rule upon the validity of the subrogatory proceedings an insurer filed against a third party following the payment of insurance proceeds to insured parties (in the context of an out-of-court settlement involving the latter and the insurer), whereas …

An In-depth Investigation is Required Before Denying Coverage!

Fall 2021 – All contracts are governed by a requirement of good faith. An insurance policy is particular as its content and implementation must be based on increased mutual confidence between an insurer and the insured. Because of its particular nature, case law has imposed an additional rule on the parties, that is, the requirement of performing their obligations with …

The Court of Appeal of Saskatchewan rules: a liability insurer must indemnify before a worksite insurer

Spring 2021 – A construction contract usually contains a clause by which the owner and the general contractor both take out insurance covering their insurable interest in a construction project. Accordingly, several types of insurance policies are issued, all providing for varying scopes and coverages. This situation gives rise to the following question: “may the terms of a construction contract …

An Insured’s Omission to Cooperate is Penalized

Mai 2016 — “An insured’s omission to cooperate, which is specified in article 2471 C.C.Q. is rarely penalized. A recent judgment of the Court of Appeal in Intact Insurance Inc. v. 9221-2133 Quebec Inc. (Centre Mécatech) confirmed an insurer’s latitude in its power of investigation and called insured parties to order when dealing with their duty to cooperate.” An insured’s …

Reserve Letter

Juillet 2015 — «“In the current context in which insurers are increasingly requested to assume the defence of their insured, in comparison with past practice, it is essential that their position be rapidly disclosed to their insured and be clearly stated…”» In the current context in which insurers are increasingly requested to assume the defence of their insured, in comparison …