B.C. COURT OF APPEAL
REASONS FOR JUDGMENT

REAL PROPERTY 2000


The tenants sued those alleged to be responsible for the erection of the "faulty" Christmas display, as well as the municipality where the mall was located. The defendants brought third party proceedings against the landlord and some of its employees. The landlord also sued the same defendants (other than the City) and the defendants again brought third party proceedings against the landlord and its employees.

On summary trial under Rule 18A the summary trial judge held that the landlord was protected against claims for contribution and indemnity by the lease clauses requiring the tenants to insure for the landlord's benefit. The judge held that the employees, however, were not protected by the insurance clauses as they were not parties to the leases. And he held that the City's third-party claim against the landlord could not be maintained as there was no civil cause of action in the City for breach of its bylaws.

On appeal, the Court affirmed the decision that the landlord was protected from claims by the defendants for contribution and indemnity by reason of the insurance clauses in the lease. The Court also affirmed the decision that there was no cause of action in the City for breach of its bylaws.

However, the Court allowed the employees' appeal holding them entitled to the benefit of the insurance clauses in the leases, applying the principle stated by the Supreme Court of Canada in London Drugs Limited v. Kuehne & Nagel International Ltd., and distinguishing and declining to follow Greenwood Shopping Plaza v. Neil J. Buchanan Ltd..