SCC To Discuss The Reasonable Diligence Defense In Cases Or Strict Liability Offenses

The Supreme Court of Canada recently granted leave to appeal in a case involving the Autorités des marchés financiers ("AMF"), the Quebec regulator regarding financial products and services. The most important issue discussed by the Court of Appeal concerns the possibility or not for Sovereign, General Insurance Company ("Sovereign") to use the reasonable diligence defense because it made a mixed error of law and fact.

Background

The facts in this matter are rather complicated, but for present purposes, may be summarized as follows:

Sovereign delivers insurance policies in Quebec through Flanders Insurance Management and Administrative Services Limited ("Flanders") an insurance broker that does not have a licence issued by the AMF;