Norris v. Lloyd’s of London, 1998 CanLII 12249 (NB CA)

This case was heard in the New Brunswick Court of Appeal.

Roughly four years after the Norrises purchased a home, they discovered hydrocarbon contamination that had been caused by an underground oil storage tank. They paid for the removal of the tank, along with various inspections and tests conducted on the property, and were informed by the experts that the total cost of remediation and ongoing monitoring could cost between $150,000 and $500,000. When the Norrises contacted their insurer, the insurance agency denied that the Norrises had coverage under the terms of their policy.

When the Norrises initiated legal proceedings against their insurer, the insurance company filed a motion requesting the New Brunswick Court of Queen's Bench to declare that the Norris’s action was barred by a limitation clause in the provincial Insurance Act. The Court agreed that the action was barred by the Insurance Act. 

The Norrises appealed to the New Brunswick Court of Appeal, which set aside the lower court’s decision and held that the Norrises' action could proceed.

View the Decision on CanLII: https://www.canlii.org/en/nb/nbca/doc/1998/1998canlii12249/1998canlii12249.html

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