The Court increases the pressure on subrogatory proceedings

March 2022 – Sécurité Nationale compagnie d’assurance c. Bel Bro inc., 2022 QCCS 723 (Granosik, j.) The Superior Court of Québec was asked to rule upon the validity of the subrogatory proceedings an insurer filed against a third party following the payment of insurance proceeds to insured parties (in the context of an out-of-court settlement involving the latter and the insurer), whereas …

An In-depth Investigation is Required Before Denying Coverage!

Fall 2021 – All contracts are governed by a requirement of good faith. An insurance policy is particular as its content and implementation must be based on increased mutual confidence between an insurer and the insured. Because of its particular nature, case law has imposed an additional rule on the parties, that is, the requirement of performing their obligations with …

The Court of Appeal of Saskatchewan rules: a liability insurer must indemnify before a worksite insurer

Spring 2021 – A construction contract usually contains a clause by which the owner and the general contractor both take out insurance covering their insurable interest in a construction project. Accordingly, several types of insurance policies are issued, all providing for varying scopes and coverages. This situation gives rise to the following question: “may the terms of a construction contract …

An Insured’s Omission to Cooperate is Penalized

Mai 2016 — “An insured’s omission to cooperate, which is specified in article 2471 C.C.Q. is rarely penalized. A recent judgment of the Court of Appeal in Intact Insurance Inc. v. 9221-2133 Quebec Inc. (Centre Mécatech) confirmed an insurer’s latitude in its power of investigation and called insured parties to order when dealing with their duty to cooperate.” An insured’s …

Reserve Letter

Juillet 2015 — «“In the current context in which insurers are increasingly requested to assume the defence of their insured, in comparison with past practice, it is essential that their position be rapidly disclosed to their insured and be clearly stated…”» In the current context in which insurers are increasingly requested to assume the defence of their insured, in comparison …

Solidary liability between an insurer and its insured, a constantly evolving notion

Octobre 2014 — “…an insurer and its insured may be held separately liable for the total amount of the obligation. This entails enormous consequences, especially regarding the limitation period (prescription) for such a recourse.” In 2005, the Court of Appeal surprised everyone in the case of CGU v. Wawanesa1, by ruling that there is solidary liability between an insurer and its insured, in …

Loss of earning capacity in connection with bodily injury: gross income or net income?

Février 2013 — “…we have been witness to an emerging contradictory tendency in case law, as several trial level judges granted an indemnity on the basis of net earnings, after deducting income tax.” The Supreme Court has been clear since 1966. Income replacement indemnities granted to compensate the loss of earning capacity are calculated on the basis of a victim’s …

The confidentiality of the report of a claims adjuster or an investigator whose services are retained by an insurer is reaffirmed by the Court of Appeal

Mai 2012 — “Last March 6, in a unanimous decision, the Court of Appeal reaffirmed the fact that an insurer could not be obliged to disclose to the opposing party the investigation report of the investigators and claims adjusters whose services it had retained.” Last March 6, in a unanimous decision, the Court of Appeal reaffirmed the fact that an …