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The perils of waiting

Thursday, May 07, 2015 @ 8:00 PM | By Nina Bombier and Jaclyn Greenberg

It is common practice for an insurer to appoint counsel to defend an insured in litigation, and simultaneously reserve its right to dispute coverage later. The Court of Appeal’s decision in Mallory v. Werkmann Estate [2015] O.J. No. 462, underscores that addressing coverage issues cannot always wait.

The Feb. 2 decision serves as a strong reminder to counsel to consider early the extent to which findings in the underlying litigation could impact the question of coverage. In some circumstances, coverage issues cannot await the outcome of...