The 2020 collapse of a grain silo in North Vancouver is now mired in a second lawsuit, this time with the terminal owner alleging their insurer has left them on the hook for the $80-million liability.
North Shore News reports a new civil claim filed in British Columbia Supreme Court, Fibreco Export Inc. is suing Marsh Canada Ltd. and broker Thomas Liu.
In March 2018, a company later acquired by Marsh Canada provided Fibreco with a builder’s risk policy that was to last right through the testing and commissioning phase of the project, the suit claims.
At the time of the accident, Fibreco was nearing the completion of a project to convert the waterfront terminal from wood pellet exports to grain.
During commissioning of the silos on Sept. 11, the first silo to be filled with grain collapsed, “causing complete destruction of the silo” as well as damage to the adjoining silo, tower and conveyor system.
In June 2021, Fibreco sued AG Growth International, the firm that designed and built the silos, alleging they used substandard designs. In their response to Fibreco’s suit, AGI contends Fibreco failed to maintain an “all risk” construction insurance policy, as required by their contract, court documents show.