Background:

• John Laporte's business premises were damaged by fire on November 23, 2018.
• Intact Insurance provided $3 million in coverage; replacement value was $2.5 million, market value was $265,000.
• Dispute over ACV led to an umpire assessing it at $1,084,000.

Legal Dispute:

• Intact challenged the umpire’s ACV determination, claiming it was unreasonable and unsupported, exceeding market value.
• The Divisional Court majority agreed and quashed the umpire’s decision; Leiper J. dissented.

Appeal Decision:

• The Court of Appeal found the majority erred, agreeing with Leiper J.
• ACV can exceed market value if it reflects the property's value to the insured.
• The umpire’s decision was based on substantial evidence, including the unique business location and repair costs.
• The indemnity principle was upheld; the award was not a profit but aimed to restore Laporte’s business position.

Conclusion:

• The appeal was allowed, reinstating the umpire’s ACV determination of $1,084,000.
• Costs against Laporte in the lower court were reversed; Intact was ordered to pay $16,000 for Divisional Court costs and $18,000 for the appeal.