To what extent can a landlord be held liable for indirect losses?
British Columbia, Canada
The following excerpt is from Orange Julius Canada Ltd. v. Surrey (City of), 2000 BCCA 467 (CanLII):
As the learned summary trial judge pointed out (at para. 29) such an interpretation would make no commercial sense. It is also contrary to persuasive American authority. In Mayfair Fabrics v. Henley (1967), 234 A. 2d 503 (N.J.S.C.) Ackerman, J.S.C. said at 510: For the tenant to secure insurance against direct loss and look to the landlords for recoupment of indirect losses would leave it exposed and uninsured for indirect losses due to fire not caused by the landlords' negligence, and to hold the landlords relieved of responsibility for direct losses but liable for indirect losses caused by their negligence is a strained construction and one which does not accord with reasonable business and insurance practices. (my emphasis)
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