Insurance broker fires back at Eastway Tank

An Ottawa insurance brokeris hitting back at accusations that it failed to secure adequate coveragefor the industrial businesswhere an explosion in 2022 left six workers dead.

In a statement of defence filed byGifford Carr Insurance Group last Thursday, issued in response to a civil lawsuit launched in January by Eastway Tank, Pump and Meter, the insurance broker denied any professional wrongdoing or negligence, andcalled the tanker manufacturer's damage claims"excessive" and "exaggerated."

"After the explosion, significant insurance proceeds were paid out," according to Gifford Carr.

Eastway allegedit lost approximately $13 million because Gifford Carr failedto ensurethe company had adequate business interruption coverage at the time of the explosion on Jan. 13, 2022.

Rick Bastien, Etienne Mabiala, Danny Beale, Kayla Ferguson and Russell McLellandied in the blast while asixth employee, Matt Kearney, succumbed to his injuries in hospital the next day.

Eastway also claimedit was underinsuredfor "employee tools" and the buildings at itsMerivale Roadsite, which were damaged"beyond repair" after the violent explosion that left the decades-old business"devastated."

None of theseclaims have been testedin court.

Gifford Carr wasEastway's broker for over 20 years before the blast. In its statement of defence, the broker said Eastway had active coverage for commercial property, business income and commercial general liability at the time of the explosion.

Any damages experienced were due to Eastway's own negligence, including failing to "make appropriate enquiries" about the type of coverage it requiredand failing to provide accurate information ordocumentation, according to Gifford Carr's response.

Separate court matter looming

The filing of the statement of defence comes at a key time for Eastway as it deals with other legal matters.

On Friday,a guilty plea is expected in the Ministry of Labour's case against the companyand its owner Neil Greene for alleged violations under Ontario's Occupational Health and Safety Act (OHSA) "on or about" the day of the explosion.

In its statement of defence, Gifford Carr allegesEastwayfailed to mitigate any damages.

"In the alternative," the response went on to allege, "due to [Eastway's] violations of the [OHSA], [its] ability to operate a garage business has been impaired by [its] own wrongful conduct from which [it is]not entitled to benefit or be unjustly enriched through the paymentof any damages."

Gifford Carr president Matthew Carr addedin a statement emailed to media on Monday that he regretted the lawsuit "has shifted focus away from the victims and their families who have endured so much as a result of this tragic event."

CBC reached out to Greene and his lawyer for commentbut did nothearback by deadline.

A concurrentcriminal investigation into the explosion continues, the Ottawa Police Service confirmedon Tuesday.