This case was heard in the Small Claims Court of Nova Scotia.
An act of vandalism caused oil contamination on Mr. Ribahi’s property, as well as on neighbouring property. Mr. Ribahi’s insurance policy with the Sovereign General Insurance Company ("Sovereign") provided coverage for clean-up on Mr. Ribahi’s property, but it did not extend coverage for clean-up on third-party properties. When Mr. Ribahi attempted to recover the expenses he incurred cleaning up the neighbouring property, Sovereign denied coverage and refused to pay.
Mr. Ribahi initiated legal proceedings in the Small Claims Court of Nova Scotia. After analyzing the terms of the insurance policy, the Court held that the costs of cleaning up the neighbouring property were not covered by the insurance policy, and it dismissed Mr. Ribahi’s claim.