Elliott

What's New
Our Programs
  Abuse Liability
  Canadian Liability Insurers
  Directors & Officers Liability
  Environmental Impairment Liability
  Exporters Liability
  Fitness Clubs
  Life Sciences Liability
  Media Liability
   Professional Liability
   Architects and Engineers
   Environmental Consultants
   Information Technology
   Ins. Brokers E&O
   Medical Malpractice
   Miscellaneous E&O
  Property & Inland Marine
  Security Industry Professional Programme
  Sports and Leisure
  Umbrella & Excess
Features
Forms & Applications
Photo Contest
AQOL Archive
News Board
Claims
Claims Archive
FAQs Archive
Search
Contact Us
Français


  
 
What's New

June 5, 2009

Delivery error costs fuel company $1 million

The Ontario Court of Appeal recently dismissed a third-party claim against D.W. Stanzel Plumbing and Heating Limited for contributory negligence and apportionment of damages for work they performed almost 30 years ago.

In 1979, Stanzel Plumbing was hired to decommission an old oil heating furnace in a residence. They removed the oil furnace but left in place the oil tank as well as the oil fill pipe and vent pipe located on the exterior of the house. They tightened the cap on the pipe and then turned it down toward the ground to prevent it from being filled and to indicate that it was no longer to be used.

Twenty-two years later, an employee of Morrison Fuels misread a delivery ticket and mistakenly made an oil delivery to the home. The employee found the turned-down pipe and, thinking that it was just loose, turned it back and removed the cap. He did not realize his error until he had pumped 933 litres of furnace oil into the wrong residence. Unfortunately, the old oil tank in the basement had rusted and leaked. As a result, oil spilled onto the unfinished floor and entered the soil and groundwater. A serious environmental contamination occurred and the house was rendered uninhabitable.

Morrison settled the claim and then sought an action against Stanzel Plumbing.

back

  © 2000-2008 Elliott Special Risks LP. All Rights Reserved.