Indexed as: West Van Holdings Ltd. v. Economical Mutual Insurance Company

摘要

Insurance — Actions on policies — Commencement of proceedings — Obligations of insurer — To defend — Interpretation of policy — Insured, owner and operator of dry cleaning business on property, held commercial general liability insurance policies issued by, at different times, insurers with coverage for property damage liability that was limited to property damage liability arising from pollutants — When insured were sued by plaintiff neighbours for contamination of their lands, they successfully applied for declaration that insurers were required to defend them in action and were awarded special costs of that application — Insurers appealed — Appeal allowed — Insured's argument that they were exposed in underlying action to claim based on contamination caused by predecessor third party was not supported by pleadings that made no mention of any predecessor owner or operation — Pleadings made no allegation that third party predecessor owner or operator caused contamination and so there was no possibility that insured were exposed to retroactive liability as subsequent owner/operator under Environmental Management Act because of actions of third party — In any event, such claim under Act did not fall within grant of coverage by commercial general liability policy that only covered events occurring during policy period and not events that took place long before it came into effect — If insured could be liable under Act for such damage, it was not risk that insurers covered under their policy — Remaining claims under Act, in negligence or in nuisance, fell within initial grant of coverage as allegations of property damage occurring during policy periods, but they were clearly and unambiguously captured by exclusion clauses and so there was no duty to defend.