The company that owns a Prince George building destroyed in an explosion last year is suing its insurance provider, the security company hired to check on the building and one of the security firm’s employees.
Commonwealth Campus Corp. filed a civil claim against Lloyds Underwriters, Paladin Security Group Ltd. and Shabaz Singh, described in the notice of claim as a security patrol officer working for Paladin.
Paladin was hired by Commonwealth in October 2021 to carry out full exterior and interior security checks of the vacant former restaurant every Monday, Wednesday and Friday. “Mobile officers will arrive on site and conduct a full exterior patrol, checking on all windows, doors and the surrounding area of the property for any signs of damage, vandalism and unauthorized persons,” Commonwealth’s agreement with Paladin states. “The officer will also go inside the building to inspect for any signs of break-ins and leaks.”
Paladin was also required to submit reports to Commonwealth by email after each check.
“Prior to the commencement of security services by the defendant, Paladin, to the plaintiff, the plaintiff specifically advised the defendant, Paladin, that external and internal inspections were a requirement for insurance coverage, and that the insurance policy states that the plaintiff, Commonwealth, must have the location inspected every 72 hours,” Commonwealth states in its suit.
The suit states that Lloyd’s denied Commonwealth’s insurance claim after the explosion, alleging there were no internal inspections on some Mondays, the alarm system was not activated or deactivated on those Mondays and there was a failure to maintain the alarm system. This violated terms of Commonwealth’s policy, the insurer determined.
Commonwealth states that to its knowledge all required inspections were carried out.
The company is asking for compensation for the losses from the insurance company and further damages for breach of contract. If the court confirms the insurer’s findings and determines that Lloyd’s was entitled to deny coverage, Commonwealth then asks for compensation from Paladin and Singh, including punitive and bad faith damages, along with court costs and interest.
None of Commonwealth’s claims have been proven in court. Neither Lloyds nor Paladin has yet filed a response.
The building in question, the former Achillion Greek Cuisine restaurant located on the southeast corner of Dominion Street and 4th Avenue, exploded early in the morning of Aug. 22, 2023.
Police determined thieves who broke into the building to steal copper pipes severed a natural gas line, causing a gas leak. One of the intruders reportedly lit a cigarette, which set off the blast that seriously injured city worker Victoria Mcgivern, who had approached the entrance of the building after noticing a gas odour. Two other people were also injured, and neighbouring buildings were damaged.
At the time of the blast the building, zoned for C1 commercial development, had been listed for sale for the six years since the Achillion closed. It had been available for lease but Commonwealth had been unable to find a tenant.
With files from Ted Clarke and Mark Nielsen
