The Curious Case Of Who Pays For A Building Flood Claim

 Wednesday, November 29, 2017

 Canadian Underwriter

A negligence lawsuit after a flood—against a company in charge of watching building automation systems—was recently tossed out of court because of the terms of the lease agreement. A plumbing firm paid settlements to tenants after a building flood, and then sought to recover the money from the property management firm responsible for overlooking the building automation systems. However, under the terms of the property management firm’s insurance contract, the property management firm would not have owed the tenants the money for the flood itself, the Ontario Superior Court found. Therefore, the plumbing firm was not entitled to collect the settlement money back from the property management firm.