Manufacturing Defects in Waterite Technologies Leak Stop Product Said to Have Caused Water Damage

This is the story of one person's experience dealing with an insurance claim resulting from a leak in a water filter device which included a leak prevention device called Leak Stop from Waterite Technologies in Winnipeg, Manitoba, Canada.

After suffering damage from a major water leak, the homeowner tried to be reasonable and fair in settling the claim with the responsible parties. This fairness and consideration was rewarded with delays, excuses and final placement of the blame by one insurance company on the manufacturer who developed and sold the seemingly worthless, or certainly misnamed, Leak Stop component across Canada.

I believe it was this component identifier: Leak Stop water leak detector by Waterite part # LS1414-KAD but I can't find it in any of the Waterite Filter or Reverse Osmosis Manuals from Barrie, Langley or Winnipeg.

Before even considering a payout on the insurance claim, engineers were called in by two insurance companies to assess responsibility and it was apparently determined by Gore Mutual Insurance that Waterite Technologies Inc. manufacture and sell a defective product which, based on our experience with the Leak Stop device, homeowners should not fully rely upon to prevent water leak damage.

Not that any of their other water quality products are questionably defective or might cause your home to flood, but I personally wouldn't buy anything from a company that refuses to take the slightest bit of responsibility when things go wrong and it can be shown that they are aware of the problem and refuse to act in their own best interest by making the water damage victim of their perceived negligence whole again.

Should the Waterite company wish to dispel this notion of indifferent malfeasance they are certainly free to produce the engineer's report which they themselves commissioned and explain why they have thusfar refused to pay for the water damages caused by their Leak Stop device if it shows that they are indeed responsible as a result of a manufacturing defect.

They may also wish to explain to consumer agencies or even class action lawyers what steps they have taken to remove this questionable product from their distribution network so that it is not responsible for even more water damage in residential homes now that they are clearly fully aware of the manufacturing defect in at least one unit.

If they aren't covering something up you'd think they'd be happy to amicably resolve the issue and simply pay out the valid claim for damages plus the incidental cost of having to needlessly pursue the claim for so long.

Frankly, if their insurance adjuster, Hugh Sutherland of James Dube Spraggs Adjusters in Winnipeg hadn't been such an unreasonable person—first asking for unwarranted delays and then refusing to produce the engineer's report—we wouldn't likey have these complaints or valid concerns about their overall integrity and I would give them the benefit of the doubt and trust that they are a responsible company.

Instead I am given the impression that they are totally indifferent to the damages caused by their seemingly defective product and I would therefore be inclined, based on my professional knowledge of the topic, to almost classify them in the same category as the scammers and consumer fraud operations I cover on this site.

Perhaps Paul Jacuzzi, President and Chief Executive Officer of Waterite Technologies, Inc. isn't aware of the public relations mess his adjuster has unwittingly caused by his refusal to settle a relatively very small claim in full.

Now that they've effectively tricked a consumer into waiting too long to file what should have been a needless court claim, insurance adjuster Hugh Sutherland won't even return correspondence now that he has washed his hands of this. Let's hope that his faucet does not contain a Leak Stop device from his client Waterite Technologies Inc.

So be careful consumers. Based on my experience you shouldn't expect any reasonable consideration from this water leak prevention company or their agents. Perhaps Paul Jacuzzi of Winnipeg will prove me wrong and show the world what a good corporate citizen he really is?

Waterite Technologies Inc.
3-75 Meridian Drive,
Winnipeg, MB
R2R 2V9

Waterite Technologies Inc.
Unit F, 112 Commerce Park Dr.
Barrie, ON
L4N 8W8

The Water Store, a/o 1562530 Ontario Inc.
525 Ontario St. S.
Milton, ON
L9T 2N2

Gore Mutual Insurance Company
P.O. Box 70
Cambridge, ON
N1R 5T3



March 16, 2011

Dear Sir or Madam:

I represent the interests of R.R (recently deceased) and his wife C. H. in this matter. She has authorized me to contact you to resolve a long-standing claim for damages related to an allegedly defective Leak Stop device installed with a water filtration system by The Water Store.

Gore Mutual, the insurer of The Water Store, advised Waterite of Barrie in writing on March 3, 2010, that the device had failed testing and was responsible for the damages sustained at their home on or about October 17, 2009 (Claim 8405996).

Gore Mutual has since that time delayed or otherwise refused to provide payment for the damages claim in the amount of $12,698.53 as documented by the aggrieved party; stating that since it was a manufacturing defect in your component that ultimately caused the damages, Waterite should bear financial responsibility.

Gore Mutual has also apparently been in contact again more recently with Waterite regarding this matter based on queries by the homeowners.

Quite frankly the affected parties are past being tired of waiting for a resolution that does not include a full payment of the reasonable expenses incurred, regardless of how you apportion blame amongst yourselves to settle this.

That a dying man should have had to trouble himself and his wife over such a trivial matter during the last months of his life was both a travesty and an emotional hardship that can hardly be compensated for in mere financial terms.

I request that the principals, or insurer, of Waterite immediately contact Gore Mutual and assess whether it is truly in your mutual interests for us to proceed to the point we file an action in the Ontario Superior Court of Justice for the initial claim and any other damages occurring proximate to the initial event.

If I have not heard back from the pending Defendants or their insurers within fourteen days with a satisfactory reply, steps will be taken to reassess the affected area for lingering effects requiring rectification. Then, a Statement of Claim shall be prepared for service upon all Defendants and filed within two weeks of that date. That claim could most certainly be in excess of the original amount requested, not to mention costs.

Thank you for your prompt attention to this matter. Should the addresses for service vary from those above please provide any corrections.

c/o Les Henderson

Who is Waterite Technologies Inc and why do they sell an allegedly defective Leak Stop device, then refuse to settle insurance claims when it lets a home flood?

On their website they state that Waterite Technologies, Inc. has its head office established in Winnipeg, Manitoba, Canada and is a leading water quality equipment engineering, distribution and manufacturing organization run by Paul Jacuzzi, President and Chief Executive Officer.

They also state that they have developed their own full line of company-branded premium water products."Through innovative product designs and superior technical service the company serves residential, commercial, industrial and municipal customers throughout Canada from its four regional sales offices and warehouses."

If "innovative" is a synonym for "improperly tested and provably defective", then I facetiously suppose they must be good at what they do. When it comes to after-sales support and responsibility for their product then they are somewhat lacking if my experience is any indication.

I can only hope that they resolve this issue without imagining that they can somehow sue me for defamation. Since I consider myself to be an expert in both Canadian and American libel law, I actually welcome any attempts to do so.

And just so they know, the average cost of prosecuting a libel action in Canada is now over $240,000, something I have successfully done already as a pro se Plaintiff, as well as defended many actions by legal bullies from around the world.

So please, bring it on if you think you must, but do expect a motion regarding jurisdiction and later, a counter-claim. Even your first trip to a lawyer will cost more than resolving a valid claim of the measly amount originally sought.

Besides, it's not even about the money at this point, just the principal of not letting some insurance company or manufacturer shaft a consumer and then abuse them while mourning the death of their spouse.


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