Defence filed in Inverary Resort lawsuit
Historic main lodge burned down in June
An insurance battle is continuing for the owners of the Inverary Resort.
The Nova Scotia Supreme Court dispute centres on the loss of the property’s historic main lodge, which burned down in June.
MacAulay Resorts Ltd., which owns the Baddeck hotel complex, says an extension was granted on its insurance policy just days before the fire broke out.
The resort owner claims that two of three underwriters for the policy are now refusing to pay their share of the insurance costs.
According to the court filing, the lodge was insured for over $4 million, which is stated to be its replacement cost.
The MacAulay family launched a lawsuit Aug. 24 against OTC Insurance Brokers of Dartmouth, underwriter Markel Canada of Halifax, as well as Quebec companies Evolution Insurance Inc., Lloyd’s Underwriters and related insurers, for breach of contract.
In addition to the policy extension, there is also a denial of coverage as it relates to the lodge’s former Thistledown Pub.
The MacAulays argue that they had begun negotiating with OTC Insurance Brokers Inc. a few months before their policy was set to expire May 31.
They claim an extension was confirmed in writing by OTC for coverage through policy provider Evolution Insurance Inc. up until June 15.
In its statement of defence, Evolution does not admit to any of the allegations.
The Quebec insurer says it hadn’t advised broker, OTC, that a policy extension was agreed upon.
Although it denies any liability to MacAulay Resorts, Evolution has issued a cross-claim against OTC, Lloyd’s Underwriters, Markel Canada and other insurers.
The Quebec company claims that should it be found liable by the court, it is to be reimbursed by OTC and the related insurers.
MacAulay Resorts lawyer Dennis James sent a letter last month to the Halifax prothonotary’s office highlighting the intricacies of the case.
“There are currently five counsel involved in the file — two located out of province,” James said. “There are now multiple crossclaims and a third-party claim in this matter.
“The plaintiff (MacAulay Resorts) submits that given the complexities of the case and the number of counsel involved, all parties would benefit from the assistance of a case management judge.” All parties did indeed confirm their agreement to such an appointment, the letter notes.
James also said that in light of the lawsuit’s ongoing impact to the Inverary Resort’s business, it is important that the matter proceed in a timely and efficient fashion.