Case Summary: Temple Insurance Company V. Sazwan

INSURANCE ISSUES

Where the conduct of the insureds was in issue in the underlying actions and with respect to coverage under the policy, policy limits covered only 5% of a multimillion dollar claim and an acrimonious relationship existed between the insureds and the insurer, the Court directed that the insureds had the right to control the defence, with counsel of their choice, funded by the insurers.

Temple Insurance Company v. Sazwan, 2018 ABQB 156, per Belzil, J. [4275]

FACTS AND ISSUES:

The insureds Sazwans were being sued in two actions for which they claim insurance coverage. They were sued by Tiger Calcium Services Inc. with respect to the sale of shares in a company the Sazwans owned 100% of the share in (Smokey Creek Ranch Ltd.), which was also a named defendant. It was alleged that the insured has misrepresented material facts engaged in fraud. They are alleged "to have intentionally breached agreements, conducting themselves dishonestly and