This case was heard in the New Brunswick Court of Queen's Bench (Trial Division).

The plaintiff, Toronto-Dominion Bank, sued the Norrises after they defaulted on their mortgage payments. In their Statement of Defence and Counterclaim, the Norrises made a number of claims against the Bank, arguing that the Bank—which they alleged had acted as their real estate agent when they purchased the property—had known that the property might be contaminated and had breached its duty to warn them. The Norrises also brought third-party claims against the vendors of the property and their property insurer, Lloyds of London.

Lloyds of London brought a motion asking the Court to strike the third-party claim against it, arguing that it had nothing to do with the mortgage dispute between the Bank and the Norrises. After considering the relevant law and legal principles concerning third-party claims, the Court agreed that there was no continuity between the Norrises’ claims against the Bank and their claims against their insurer. The Court therefore allowed the motion and struck the third-party claim against Lloyd’s of London.

View the Decision on CanLII: https://www.canlii.org/en/nb/nbqb/doc/1996/1996canlii4762/1996canlii4762.html

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