Key Points:

• Background:
  • Graham was the general contractor for the Wildflower project in Strathmore, involving a water reservoir and pump station.
  • On January 11, 2013, a failure in the East Calgary Regional Waterline (ECRW) caused extensive flooding, damaging the project site.
  • Graham claimed over $2.8 million in damages, remediated the site, and filed for insurance under the Course of Construction (COC) Policy.
• Legal Proceedings:
  • Graham’s insurer subrogated the claim against Epcor, alleging negligence.
  • Epcor sought summary dismissal, arguing:
    1. The Town, not Graham, suffered the loss.
    2. Epcor is an insured under the COC Policy, barring subrogated claims.
• Court's Analysis:
  • Suffering of Loss:
    • Graham was contractually responsible for damages under Article 18 of the Construction Contract.
    • The Town extended Graham’s contract time but did not assume financial responsibility for the flood damage.
    • There is a genuine issue requiring trial regarding whether Graham or the Town suffered the loss.
  • Epcor’s Insured Status:
    • The Court examined if Epcor supplied services to the project at the project site.
    • Epcor's involvement was primarily in managing the Town’s water infrastructure.
    • Insufficient evidence concluded Epcor was an insured under the COC Policy during the flooding incident.
• Conclusion:
  • Appeal dismissed.
  • Costs to be discussed between the parties. Amount was not specified.