Welcome to the February 2008 Insurance Netletter.
In this issue:
Please contact Nigel Trevethan or any member of our Insurance Practice Group with any questions about the cases in our netletter. A version of this netletter is published twice per month on Quicklaw.
About this Newsletter
The Harper Grey LLP Insurance Netletter provides a monthly review of new cases and emerging issues in Canadian insurance law. These summaries are not legal opinions. Readers should not act on the basis of these summaries without first consulting a lawyer for analysis and advice on a specific matter.
Automobile insurance
Automobile insurance - Policies and insurance contracts - Automobile, definition - Statutory provisions - Duty to defend
The Insurer appealed a decision of the Motion Judge that the Insured's automobile insurance policy covered damages for injuries from a go-kart accident and that the Insurer had a duty to defend in the main action and cross-claim.
Commercial general liability insurance
Commercial general liability insurance - Exclusions - General contrator - Third parties - Property damage; Evidence - Evidence beyond pleadings - Extrinsic evidence
The Insurer brought a motion for a determination as to its obligation to provide a defence for the Insured to claims raised in an underlying action. The Insurer also sought an order dismissing a third party claim filed by the Insured against it. The Insured brought a cross-motion seeking a declaration under a commerical liability insurance policy issued by the Insurer that the Insurer was obligated to provide a full defence to the claims brought by the Plaintiff in the underlying action. The Court considered whether it was appropriate to consider any pleadings other than those directed at the Insured.
Homeowner's insurance
Homeowner's insurance - Actions - Proof of loss - Material non-disclosure; Policies and insurance contracts - Rights and duties of insurer - Good faith, breach of; Bad faith; Agents and brokers - Duties and liabilities of agent - Failure to obtain reason
Punitive damages of $500,000 were awarded against Insurer who denied coverage to Homeowner whose home was destroyed by fire, where the Court found that the Insurer made unsupported allegations of arson against Homeowner.
Multiple insureds
Multiple policies - Apportionment and contribution; Homeowner's insurance - Actions - Coverage - Material non-disclosure; Policies and insurance contracts - Rights and duties of insurer
The Insureds were successful in obtaining a declaration that one of their Insurers ("Sovereign") was not entitled to void its participation in the policy on the basis of material misrepresentation or non-disclosure where the Court found that Sovereign failed to meet the onus of proving the alleged non-disclosure on a balance of probabilities.
For comments or suggestions, please contact:
| Nigel L. Trevethan Insurance Law Group Chair Harper Grey LLP Barristers & Solicitors |
t: 604.895.2821 |
