Lakeland Mills suing insurance provider

Lakeland Mills is suing its insurance company, as the legal fallout from 2012’s deadly blast at the mill continues.

In a statement of claim filed in BC Supreme Court, Lakeland is seeking to have the cost of its WorkSafeBC fines covered by Trisura Guarantee Insurance Company.

Last summer, Worksafe levied fines and penalties of just under $725-thousand dollars against Lakeland in connection with the mill explosion that claimed the lives of Glenn Roche and Alan Little.

In its civil case against its insurer, Lakeland claims the WorkSafe fines constitute a claim for a ‘corporate wrongful act’ – an action that should have triggered Lakeland’s insurance coverage.

Lakeland is also seeking damages for breach for policy and defence costs incurred in connection with the WorkSafeBC claim.

This is the second civil case to be filed on the blast. At the start of January, workers at Lakeland Mills and Babine Forest Products brought a class action lawsuit against WorkSafeBC, alleging the organization “knew or ought to of known” the hazards of combustible dust.