Chitiz Pathak successful on appeal of insurance issue

March 10, 2014

Alastair McNish upholds insurance coverage for client at Court of Appeal.

Al McNish was successful in an application on behalf of a client who sought insurance coverage from his home insurer to defend him in a third party claim. The client’s then-8 year old daughter had been struck by a car while she was riding her bike. The driver and owner of the vehicle were sued for damages, and they in turn sued the parents in a third party claim, alleging that they failed to properly supervise their daughter. The insurer denied coverage on the basis of an exclusion clause intended to exclude insurance coverage of claims brought by one member of the household against another. Justice Sanderson ordered the insurer to defend our client, and to indemnify him fully. The insurer appealed.

On appeal, Al and associate Gargi Chopra successfully argued that the exclusion clause in the homeowner’s insurance policy did not capture “indirect” claims against the homeowner – that is, claims for contribution from the parent in the event the daughter was awarded damages. As a result, the insurer was found to owe a duty to defend, and our client was awarded all of his costs of defending the third party claim, as well as costs of the application and appeal.

A copy of the decision is available by clicking here.

Alastair McNish, Litigation, Litigation News