This case was heard in the Supreme Court of Newfoundland and Labrador (Trial Division).
After Harvey’s Oil Limited ("Harvey’s") was sued for negligence causing oil contamination on several properties, the company’s insurer denied that it had an obligation to defend the company against the lawsuit.
Harvey’s was in the business of delivering fuel oil to residential properties, and it had both “Automobile Insurance Coverage” and “Commercial General Liability Coverage” through Lombard General Insurance ("Lombard"). After Harvey’s was accused of causing contamination by delivering fuel oil to fuel supply systems that it had not maintained properly, Lombard argued that the delivery of the fuel oil by tank wagon did not fall within the scope of the “Automobile Insurance Coverage,” and it also argued that an exclusion clause in Harvey’s insurance policy meant that the “Commercial General Liability Coverage” limited Lombard’s liability for pollution.
After considering the relevant law and the terms of the policy itself, the Court rejected Lombard’s arguments and held that the insurance company did have a duty to defend Harvey’s against the suits that it was facing.
To read about this case in the Newfoundland and Labrador Court of Appeal, go to Lombard General Insurance Company of Canada v. Harvey’s Oil Limited, 2004 NLCA 9 (CanLII).