Applicability of “care, custody or control” exclusion to a “Park & Fly” service

On January 10, 2018, Amélie Thériault appeared before the Supreme Court of Canada on behalf of an insurer that invoked the standard “care, custody or control” exclusion in a CGL Policy to deny coverage to its insured, a hotel which offered a “Park & Fly” service to its customers.

The hotel required the customers to hand over the keys to the vehicles that the customers parked on a lot behind the hotel. On two occasions, customers’ vehicles were stolen. The hotel was sued by the subrogated insurers of the stolen vehicles and was found liable for the losses by the Court of Quebec and the Court of Appeal of Quebec. The latter Court overturned the judgment of the Court of Quebec that held that the “care, custody or control” exclusion did not apply in the circumstances.

The decision of the Supreme Court of Canada was reserved.