Knowledge Centre

General Contractor Sued for Defective Work – Wellington Motion – The Insurer’s Obligation to Take up the Defence – Interpretation of “Material Damage” – The Insurer does not Lose its Right to Hire a Lawyer of its own Choosing

April 2018 Donati Maisonneuve, Quebec

Ferme des Trois Montagnes (2015) v. Constructions GSL Inc., 2017 QCCQ 10721

In the framework of a dispute between Ferme des Trois Montagnes (“The Farm”) and Constructions GSL (“GSL”), the latter party’s insurer, Promutuel, denied coverage and refused to take up its client’s defence. GSL filed a Wellington motion and claimed the reimbursement of lawyer’s fees related to its defence.