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High price paid for delay in filing notice

Thursday, January 12, 2017 @ 7:00 PM | By Nicole Mangan

Is giving notice of an action to an insurer a prerequisite to triggering its obligation to assume the cost of providing a defence? Does the obligation to assume defence costs arise from the time the action is commenced? Is any prejudice suffered by the insurer, arising from late notice, appropriate to consider in this analysis? Recently the British Columbia Court of Appeal addressed these questions in Lloyd’s Underwriters v. Blue Mountain Log Sales Ltd. 2016 BCCA 352.

As background, in 2012, litigation ensued between two groups...