Policy only covered direct causes of losses

Insurance - Extent of Risk (Exclusions) – Miscellaneous

Appellant was business owner, who claimed coverage under commercial policy issued by respondent insurer. Owner brought two actions, first one being for lost rental income and $950,000 bonus payable to him. Second action was for indemnification for alleged theft or mishandling of goods, and related business losses. First action was dismissed in its entirety. Second action was dismissed as to property-related claim, but was allowed to proceed on issue of business losses. Owner appealed dismissal of first action, and partial dismissal of second action. Insurer cross-appealed dismissal. Appeal dismissed; cross-appeal allowed. Trial judge properly found that infestation affecting production of owner's baked goods, was not direct cause of loss. Policy only covered direct causes of losses. Business interruption losses had already been recovered. Allowing losses claimed by owner would amount to double recovery.

Marvelous Mario's Inc. v. St. Paul Fire and Marine Insurance Co. (2019), 2019 CarswellOnt 12376, 2019 ONCA 635, C.W. Hourigan J.A., David M. Paciocco J.A., and Fairburn J.A. (Ont. C.A.); affirmed (2018), 2018 CarswellOnt 5700, 2018 ONSC 1365, Akbarali J. (Ont. S.C.J.).

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