The case of Innvest Real Estate Investment Trust (o/a Travelodge Airport North Bay) v 1328151 Ontario Inc. (o/a Paul Davis Systems of North Bay Nipissing) at al., 2014 ONSC 5891 is a ruling based on Rule 21: Determination of an Issue Before Trial of the Rules of Civil Procedure, R.R.I. 1990 Reg. 194.  Crystal Clean was the named insured on a policy issued by Economical. Davis Systems was an additional insured on that same policy and was covered “only with respect to liability arising out of the operations performed by or for the named insured but excluding any negligent acts committed by such additional insured.” The plaintiff retained Davis to perform work. Davis sub-contracted that work out to Crystal. The plaintiff sued both Davis (via vicarious liability) and Crystal for damages resulting from Crystal’s negligence. Davis brought a third party claim against Economical for a declaration that Economical was obliged to defend and indemnify it under the policy.

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