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By Samantha Ip & Sean Tessarolo (respectively counsel and articled student for the corporate tenant at trial)

Many in Vancouver will remember when the Taco Del Mar restaurant on West Broadway exploded in the early morning hours of February 13, 2008. That explosion resulted in damage to the office building which contained the Taco Del Mar and to buildings across the street. Austeville Properties Ltd. v. Josan et al., 2016 BCSC 1963 is an action that arose out of the efforts of the landlord’s insurer to recover over $3 million paid out to the landlord for property damage repairs and business interruption losses arising from that explosion. The landlord’s insurer brought a subrogated action in the name of the plaintiff landlord against its corporate tenant and several other individuals including the only two directors of the corporate tenant, Mr. and Mrs. Nandha.

by Raman Johal

For the first time in BC, a Court has decided that an insured is entitled to special costs, rather than the lower tariff costs, solely because they were successful in a coverage action against their insurer.