In Douglas v Stan Ferguson Fuels Ltd., 2014 ONSC 4709, 622.6 litres of home fuel oil escaped from the plaintiffs’ external oil tank, contaminating the residential property. The plaintiffs had a valid homeowner’s insurance policy with State Farm, so State Farm indemnified the plaintiffs in full and paid for repairs, remediation and additional living expenses. An action was commenced by State Farm in the names of the plaintiffs against Stan Ferguson Fuels Ltd., the fuel oil suppliers, distributors and service contractors. The action was a fully subrogated claim by State Farm for the recovery of payments made under the policy. However, both plaintiffs had filed for bankruptcy prior to the action commencing. At the time the action was commenced, one plaintiff was an undischarged bankrupt.

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