The Corporation of the Town of  Hunstville v. Lloyd's Underwriters, et al, 137 O.R. (3d) 129  (Ont. S.C.J.)

  • RE:  an insurer's duty to provide a defence to an Action                                        

We successfully brought an Application for an Order determining that a Municipality was owed a duty to defend by one of its insurers where two successive insurance policies were in place and both insurers had denied coverage under their policy.  


The facts involved an insured who was sued for negligence following water penetration into a home and its insurer who had settled that litigation on terms which included the insured municipality taking a role in the repairs of the water penetration .  The repairs were allegedly not successful and the insured was sued again.  The insured had changed insurers in the interim and the question became, did one or both of the insurers owe the insured a duty to defend? 

The Court ordered the defendant Lloyd's Underwritters to defend the second action and reimburse the insured for the expenses it had already incurred in that regard.