Actually, TenPenny, CBC did a pretty piss poor job of reporting on this story (I'm assuming that's where you got your info from anyways because if you read other articles from other local publications you'd know why.) The homes that were damaged were both owned by the grandparents that live next door. So this is NOT a case of two insurance companies suing each other. The insurance company is in fact suing the girl and her father. This is a quote from the Edmonton Journal:
Braybrook said he has been advised by his lawyer to fight the suit.
"The lawyer I talked to explained that when you sue a minor, you can't sue for monetary gain because they don't have any money. But they can sue and deem her responsible and they have 10 years to come back on her," Braybrook said.
"She would have to declare bankruptcy at 18 and that is why we are going to have to fight this."
Doesn't really sound like two insurance company's suing each other to me. I feel bad for the girl. This suit is just pure BS. Insurance companies are evil in my opinion.