Canadian National Railway Company v. Royal and Sun Alliance Insurance Company of Canada

2007 ONCA; Leave to Appeal granted (32062) 2007 CanLII 45668 (S.C.C.); appeal allowed 2008 SCC 66 (S.C.C.); Lerners successfully appealed a judgment (whose value with post-judgment interest exceeded $30 million) against the subscribing insurers to a property insurance policy covering CN’s tunnel construction project under the St. Clair River in 1992. The case focuses on the meaning of the exclusion for “faulty design.” It involves the failure, under expected operating conditions, of a tunnel boring machine, which was, when built, record-breaking in its size.