A B.C. Supreme Court Justice has ordered an insurance company to cover the legal costs of one of the defendants in a civil lawsuit over the December 2009 fire that destroyed the old Northern Thunderbird Air hangar.
In a ruling issued Tuesday, Justice Nathan Smith found that Royal and Sun Alliance Company of Canada is required by its policy to defend Brian Kirk Martin in the court case by covering the costs of a lawyer and other expenses.
The ruling centred on arguments surrounding a clause in the insurance policy for Martin's home in Spruce Grove, Alta., that includes third party liability coverage for his personal actions anywhere in the world so long as they're not related directly to his trade, profession or occupation.
Royal argued it is not required to provide a defence because the claim relates to business activities. In the civil claim, Martin and two brothers are identified as directors and officers of the company that owned the building and of three companies that carried out business there.
But in the lawsuit, brought by Central Mountain Air Ltd. and Northern Thunderbird Inc., it's alleged the fire started in the office of Bluewater Business Solutions Inc., in the northeast corner of the building's second floor, and that Martin and other defendants were "personally present" in the office when the fire started.
Furthermore, the plaintiffs allege Martin and the others were in the office "in their own capacity" and so owed a duty of care to act reasonably and "do nothing likely to cause a fire."
In reaching his decision, Smith noted the plaintiffs specifically allege negligence by Martin in his own capacity "separate from and in addition to the alleged liability of the companies" and that could include Martin's use of the premises for personal activities.
"The issue in this application is not what the plaintiffs may ultimately be able to prove," Smith said. "It is only whether the pleadings raise the possibility of a claim falling within the insurance coverage. I find that they do and the insurer's duty to defend is triggered."
In a response to the civil claim, Martin said he was not in the Bluewater office at any material time.
The allegations have not yet been proven in court.
