Lloyd's Law Reports

Professor Robert Merkin KC; Dr Johanna Hjalmarsson

Document

PENTAGON CONSTRUCTION (1969) CO. LTD. v. UNITED STATES FIDELITY & GUARANTY CO.

[1978] 1 Lloyd's Rep. 93

CANADABRITISH COLUMBIACOURT OF APPEAL

Before Mr. Justice Maclean, Mr. Justice Bull and Mr. Justice Robertson

Insurance (Contractor's All Risk) - Exclusion clause - Policy excluding liability for "faulty or improper workmanship" and "faulty or improper design" - Concrete tank to be built by insured contractors - Top of tank to be welded to wall by metal struts - No welding carried out by insureds' employees - Tank filled with water to test it - Bursting of tank - Claim by insured - Whether loss fell within exception clause - Whether insurers estopped from denying liability - Canada. Insurance (Contractor's All Risk) - Policy - Construction - Contra proferentem rule.

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