22 Mar 2023
Mizen Holdings Corporation v. Toronto (City) et al
The case of Mizen Holdings Corporation v. Toronto et. al, dated March 21, 2023, involved a motion for the summary dismissal of third-party claims related to water losses in a Toronto condominium construction project, and it has been resolved in court.
Plaintiff, Mizen Holdings Corporation, had initiated a legal action in 2016 against the defendants, including the City of Toronto et al had claimed negligence by the City and OE for water damage occurring during the construction. In response, the defendants counterclaimed, involving third parties in the form of YYZed Project Management (2042102 Ontario Ltd.), Shor-Cais Foundation Contractors (Shor-Cais), and Otomic Contactors Ltd. (Otomic) for contribution and indemnity.
The third parties had sought summary dismissal, arguing that Mizen lacked the right to sue them due to contractual agreements. These contracts had contained liability waivers and stipulated that the third parties should be named as additional insureds under Mizen's insurance policy. In response, the defendants had contested these arguments, asserting that Mizen's damages had resulted from the actions of its third-party contractors. They had insisted that the contractual waivers had not been in effect during the time of the damages and that the rules of subrogation did not apply.
Upon analyzing the issues, the court had dismissed the third parties' motion for summary judgment. The court had determined that the waivers of liability and covenants to insure did not bar the defendants' claims, and the anti-subrogation rule did not apply in this context. The case did not provide a specific amount regarding any financial award.