What is Adverse Costs Protection Insurance? Adverse cost
coverage is also known as "legal costs protection". It
provides coverage to litigants who face paying costs to a
successful opponent on motions, from pre-examination for discovery
to a trial. It can also protect litigants from potential expenses
not covered by the contingency fee agreement. I know that I now ask
for a copy of the policy from Plaintiffs at discovery, and to date,
have been refused a copy of the insurance policy and declaration
page. This appears to be contrary to the requirements within the
Rules of Civil Procedure but that issue will be addressed
in a future paper. However, in Shah v. Loblaw Companies
Limited, a recent 2015 decision of Lemon J, the issue that was
addressed was whether having Adverse Costs Protection Insurance
negates the need for pursuing an order for Security for costs.
