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Quebec Liability Insurance Duty to Defend Update

After missing the net on his first attempt, the Minister of Finance has scored a goal with his second effort at drafting regulations identifying liability insurance contracts that are exempt from Quebec’s public order “defence in addition to limits” requirement. Overview On May 5, 2022, a revised, long-overdue regulation [Regulation][1] will come into force that […]

Court of Appeal of Quebec: Insurance Policy Arbitration Clause Trumps COVID-19 Class Action

Multi-tiered “mediation-arbitration” clauses are increasingly popular since they not only offer flexibility in the manner of resolving disputes, but also provide a timely, cost-effective dispute-resolution option that enables the parties to proactively intervene in the early stages of the dispute. The Court of Appeal of Quebec has rendered an important decision that enables insurance companies […]

A Draft Regulation Significantly Changes the Duty to Defend in Quebec

On September 8, 2021, the Quebec Minister of Finance published in Part 2 of the Official Gazette of Quebec a draft of the regulation [Draft Regulation] that specifies the categories of insurance contracts, and insured parties, that may derogate, in part, from the rules set out in articles 2500 and 2503 of the Civil Code […]

Future Electronics v. Chubb Insurance: The Insurer Prevails in Canada’s First Ruling on the Social Engineering Fraud Endorsement

The Quebec Superior Court ruling rendered on September 29 in Future Electronics Inc. (Distribution) Pte Ltd. v. Chubb Insurance Company of Canada, 2020 QCCS 3042 is the first Canadian decision, and only the second North American ruling, that has analyzed the interplay between the Social Engineering Fraud, Computer Fraud and Funds Transfer Fraud insuring agreements […]

RSS succeeds in having a $55-million liability claim dismissed before the Supreme Court

A corporation of which you are a shareholder claims to have sustained important damages which, in your view, were caused by the fault of professionals. These damages and losses caused the corporation’s bankruptcy. Can you, as shareholder, sue the professionals to claim compensation for the corporation’s damages? No, the Supreme Court of Canada ruled in Brunette […]

Can you claim solicitor-client privilege against your own insurer?

On June 20, 2017, the Court of Appeal of Québec confirmed that an insured cannot invoke solicitor-client privilege to refuse to provide its insurers with legal opinions upon which it relied to settle a claim in which it was a defendant (Chubb Insurance Company of Canada c. Domtar inc., 2017 QCCA 1004). In 1998, Domtar […]

Bad news and good news re the “Work” exclusion

The bad news: the SCC won’t hear Constructions GSS Gauthier. The good news: CGL insurers can reasonably challenge the precedential effect of Gauthier re the standard “Work” exclusion To learn more