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REAL ESTATE costs, which can be substantial." The Montreal lawsuit arises from abnormal deterioration of the outer sur- face of a University of Montreal pavil- ion. When the university became aware of the damage in 2008, it launched an action against everyone involved in the design and construction of the building in the early 1990s. Intact told Placements Lemay Nadon Inc., a Laval, Que.,-based company which supplied clay bricks for the pavilion, that it was denying coverage under its comprehensive general liabil- ity policies on the grounds that dam- age allegedly resulting from defective bricks could constitute property damage or accident as spelled out in the policies. In ruling in favour of the brick sup- TitlePlus_CL_Jan_10 12/15/09 10:00 AM Page 1 plier's motion to compel the insurance company to defend the lawsuit, Justice Daniel Payette relied on last year's Supreme Court of Canada decision in Progressive Homes Ltd. v. Lombard General Insurance Co. of Canada. That case arose out of a lawsuit launched by the British Columbia Housing Management Commission alleging that Progressive Homes, a general contrac- tor hired to build several housing com- plexes, was negligent and in breach of contract since water had leaked into four buildings, causing significant rot, infestation, and deterioration, making them unsafe, and posing a serious risk to the health and safety of the occu- pants. As Justice Marshall Rothstein stat- ed in setting out the reasons for the unanimous Supreme Court ruling: "An insurer is required to defend a claim where the facts alleged in the pleadings, if proven to be true, would require the insurer to indemnify the insured for the claim. It is irrelevant whether the allega- tions in the pleadings can be proven in evidence. What is required is the mere possibility that a claim falls within the insurance policy." Built just for you Together we have all the tools The TitlePLUS® your clients from title risks.1 you, through our legal services coverage2 Program works with you to help protect With the right tools we assist , by reducing the inconvenience of dealing with a loss as the result of an error or omission in your real estate transactions. To ensure your clients get the most comprehensive coverage in one policy, take a look at the TitlePLUS Program, your Bar-related® real estate partner! PROTECTION AS GOOD AS IT GETS 1-800-410-1013 1 titleplus.ca Please refer to the policy for full details, including actual terms and conditions. The TitlePLUS policy is underwritten by Lawyers' Professional Indemnity Company (LAWPRO®)/ Assurance LAWPRO®. Assurance LAWPRO is a registered name used in Québec by Lawyers' Professional Indemnity Company. Contact LAWPRO for brokers in Manitoba, Alberta and Québec. 2 Excluding OwnerEXPRESS® policies and Québec policies. ® TitlePLUS, the TitlePLUS logo, OwnerEXPRESS, LAWPRO and Assurance LAWPRO are registered trademarks of Lawyers' Professional Indemnity Company. ® BAR-RELATED Mark is a registered Mark of North American Bar Related Title Insurers used by LAWPRO under License. 28 N O VEMBER / D ECEMBER 2011 www. CANADIAN Lawyermag.com