The Supreme Court of Canada has ruled that insurance companies
with no previous knowledge of a policy breach may deny coverage to
their insureds once knowledge of the breach comes to their
attention, no matter how late that may be.
In Trial Lawyers Association of British Columbia v. Royal
& Sun Alliance Insurance Company of Canada, 2021 SCC 47
("Trial Lawyers"), the Appellant sought to set aside
the Court of Appeal's decision which found that the insurer was
not estopped from relying on the breach and denying coverage.
The Supreme Court dismissed the appeal.
Background
Steven Devecseri ("D") died in a motorcycle accident
on May 29, 2006.
D's insurer, Royal & Sun Alliance ("RSA")
defended his estate in two actions commenced by Jeffery Bradfield
("B") and Jeremy Caton ("C"), who were injured
in the accident.
