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Compagnie d'assurance Definity/Assurance Economical v. Globe Union (Canada) inc.

Executive Summary: Key Legal and Evidentiary Issues

  • Two defendants sought dismissal of a subrogated construction-defect claim by arguing that a downstream deed of sale broke the chain of the legal warranty of quality.
     
  • Quebec's Code of Civil Procedure permits combining an inadmissibility application under article 168(2) with an abuse application under article 51 within a single motion, though each follows a distinct analytical framework.
     
  • Courts must confine an inadmissibility analysis to the allegations and exhibits of the originating application, while an abuse analysis under article 51 may draw on the broader record.
     
  • Judicial caution governs both grounds, since dismissal at a preliminary stage carries serious consequences for access to justice.
     
  • Central to the ruling is the distinction between lay vendors and professional vendors when assessing whether a warranty exclusion clause interrupts the chain of transmission.
     
  • Article 1730 C.C.Q. creates a direct sub-purchaser action against manufacturers, general contractors, and other professional vendors that operates independently of intermediate transmission under article 1442 C.C.Q.
     


Facts of the case

On April 18, 2022, water damage occurred at a residence when a flexible water-supply hose connected to a toilet ruptured. The insurer, Compagnie d'assurance Definity/Assurance Economical, indemnified its insureds for the loss. In March 2025, subrogated to its insureds' rights under their homeowner's policy, the insurer sued three parties: Gaétan Sirois Construction inc., the general contractor who built the residence; Globe Union (Canada) inc., the manufacturer of the allegedly defective hose; and Plomberie St-Luc inc., the subcontractor that supplied and installed the hose.

Sirois Construction and Plomberie moved to dismiss the action, relying on a May 30, 2013 deed of sale under which the insureds acquired the property from a prior owner, Maxime Leclerc, without legal warranty of quality. That deed's warranty clause stated the sale was made without warranty of quality and at the purchaser's own risk. The defendants argued this exclusion, combined with an earlier May 2012 sale from Sirois Construction to Leclerc, broke the chain of warranty protection running back to the general contractor and subcontractor.

Policy and legislative provisions at issue

The motion combined two distinct procedural grounds: an application for inadmissibility under article 168, paragraph 2 of the Code of Civil Procedure, and an application to dismiss for abuse under articles 51 and following of the same Code. The defendants relied principally on the Court of Appeal's decision in Blais v. Laforce, which recognized that a valid warranty-exclusion clause in an intermediate sale can bar a sub-purchaser's recourse against earlier vendors. Against this, the plaintiff invoked article 1730 of the Civil Code of Québec, which creates a direct action allowing a sub-purchaser to sue a manufacturer, general contractor, or other professional vendor for defects, and article 1733 C.C.Q., which bars professional vendors from excluding or limiting the legal warranty of quality.

Reasoning and analysis

On the inadmissibility ground, the court held it could not consider the May 30, 2013 deed of sale at all, since the originating application made no reference to it and inadmissibility motions must be decided strictly on the allegations and exhibits of that application. Taking the plaintiff's allegations as proven, the court found they were capable of supporting the relief sought, which alone was sufficient to dismiss this branch of the motion.

On the abuse ground, the court did consider the deed of sale, since article 51 permits reliance on the broader record. Even so, the court found the defendants' reliance on Blais v. Laforce misplaced. That decision involved only lay, non-professional vendors throughout the chain of title, and its holding that a warranty exclusion can break the chain of transmission was expressly grounded in that context. Here, by contrast, the chain involved professional vendors, a manufacturer, and a subcontractor — parties who, under article 1733 C.C.Q., cannot exclude their own liability under the legal warranty. The court reviewed supporting doctrine, including the treatise authors Lluelles and Moore and a 2023 Superior Court decision in Tessier v. Guimond, both of which similarly confined the Blais reasoning to disputes among lay vendors. The court further reasoned that article 1730 C.C.Q., codifying the Supreme Court's ruling in Kravitz, creates a direct action that does not depend on transmission of rights through the chain of title under article 1442 C.C.Q., and effectively bypasses intermediate vendors. Nothing indicated that the individual who acquired the building directly from Sirois Construction — identified as M. Hébert at this point in the judgment, though the same acquisition is attributed to M. Leclerc earlier in the decision [a name inconsistency in the original text] — had waived the legal warranty of quality, so a direct claim against the general contractor and its subcontractor remained available. The court concluded the defendants had not summarily established that the action was without any reasonable chance of success.

Ruling and overall outcome

The court dismissed the application to dismiss brought by Gaétan Sirois Construction inc. and Plomberie St-Luc inc., with legal costs. The judgment does not state a specific monetary amount, as the ruling addressed only the preliminary procedural motion.

Compagnie d’Assurance Definity
Assurance Economical
Globe Union (Canada) Inc.
Law Firm / Organization
Clyde & Co Canada LLP
Lawyer(s)

Laurie Lacasse

Gaétan Sirois Construction Inc.
Law Firm / Organization
Arseneault & De Munck Avocates inc.
Lawyer(s)

Nadine Arseneault

Plomberie St-Luc Inc.
Law Firm / Organization
Arseneault & De Munck Avocates inc.
Lawyer(s)

Nadine Arseneault

Quebec Superior Court
500-17-133547-250
Civil litigation
Not specified/Unspecified
Plaintiff