In what circumstances will a company be able to recover the cost of repairing latent defects in a crane?

Alberta, Canada


The following excerpt is from Carwald Concrete and Gravel Co. Limited v. General Security Insurance Company of Canada, 1985 ABCA 288 (CanLII):

In Rivtow Marine Limited v. Washington Iron Works 1973 CanLII 6 (SCC), [1974] S.C.R. 1189, the majority held that the cost of repairing latent defects in the crane was a purely economic loss and not recoverable. The latent defects created a risk of collapse but they were repaired before physical damage resulted from a collapse.

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