I. INSURANCE ISSUES
D. An insurer-appointed defence counsel will be
in conflict of interest if the interests of the insurer and the
insured are not in alignment, and in such cases the Court may
appoint independent counsel (an amicus curae or Cumis
counsel) to defend the insured at the insurer's expense.
Reeb v. The Guarantee Company of North
America, 2017 ONCA 771 per
Sharpe, Lauwers and Roberts JJ.A. [4253]
I. FACTS AND ISSUES
Two 14 year old boys (Reeb and Riley) were playing with pellet
guns. Reeb shot Riley, who consequently lost an eye. The underlying
action was against Reeb, his mother, and his father (who were
separated at the time).
Reeb's mother had homeowner's insurance through Royal
& Sunlife which had a third party liability limit of $1
million. Riley's claim was for $1.5 million. The insurer
appointed counsel to defend the claim under a reservation of rights
while it investigated coverage.
