Deslaurier Custom Cabinets Inc. V. 1728106 Ontario Inc. et al., 2016 ONCA 246
In this case, Deslaurier Custom Cabinets Inc (the “tenant”) had leased several units in a building belonging to 1728106 Ontario Inc. (the “landlord”). A section of the tenant’s lease required the tenant to obtain insurance coverage for any risk of loss or damage that may happen to its property (“Insurance Policy #1”), and that to the extent that fire damage was not fully insured by such insurance, take out additional insurance to cover any remaining risk. The lease also contained a covenant stating the landlord would indemnify the tenant for any damage to the Premises caused by any act, default or negligence of the landlord. This indemnity was limited by another section of the lease, stating that the tenant was not entitled to claim against the landlord for any loss or damage caused by fire. The terms of the lease required the tenant to make the landlord an additional insured in the tenant’s property damage insurance policies, something the tenant ultimately failed to do.
