The Supreme Court of Canada recently refused leave to appeal the
decision in Onex Corporation et al. v. American Home Assurance
Company et al, 2013 ONCA 117, a case where the Ontario Court
of Appeal had provided guidance on a number of important issues in
the context of director and officer insurance policies. In
particular, the court addressed the adequacy of notice of claims
under a prior notice provision, the proper interpretation of an
"insured vs. insured" exclusion clause and
"reasonable expectations" in the context of a unique fact
pattern.
The Onex Action
In this coverage dispute (the "Onex Action"), Onex
Corporation claimed they were entitled to payment of (very
substantial) defence costs pursuant to the primary and excess
D&O policies for an action commenced against them (and others)
in the state of Georgia in 2005 (the "Georgia Action").
Onex incorporated Magnatrax Corporation ("Magnatrax") as
a subsidiary in 1999. The Georgia Action arose out of
