Judge rules insurer is not liable for cannabis resin lab explosion
Decision delivered nearly a decade after the explosion incident
Judge rules insurer is not liable for cannabis resin lab explosion
INSURANCE NEWS
By Lyle Adriano
31 May 2018

A judge in Saskatchewan has ruled that while two landlords can sue their former tenants in relation to a cannabis resin lab explosion, the landlords cannot sue their insurer for denying coverage for the event.

CBC News reported that the decision was delivered on May 11 – over nine years since the explosion incident.

In 2009, an explosion rocked the property located on the 4100 block of Princess Street in Regina; later investigations found that the blast was linked to the illegal production of cannabis resin on the property.

Landlords Giuseppe and Rosa Carteri had a fire policy worth $175,000 with Saskatchewan Mutual Insurance. However, the Carteris were refused a payout due to a clause which denies coverage when the damage is the result of illegal activities involving drugs.

After the explosion incident, the Carteris hired a Calgary engineer to inspect the damage and prepare a report. That report, which cited evidence from the findings of two local police officers, concluded that the damage originated from a main floor bathroom.

Inside the bathtub, investigators found a pot which contained resin residue. Investigators also found a yellowish stain in front of the toilet – a telltale sign of a chemical burn. Canisters similar to those used to contain butane were also found in the garage.

The property has since been demolished.

 

Related stories: 
Cannabis legalization "not an event - it's a process"
Legal cannabis: 'It's just the same as insuring businesses in any industry'

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