In Markham v. AIG Insurance Company of Canada, 2020
ONCA 239A, the Ontario Court of Appeal addressed a dispute between
two insurers regarding the extent of their respective duties to
defend a municipality, including the apportionment of defence costs
and their roles in participating and controlling the defence of the
claim.
Background
In the underlying action, a young boy was injured when a puck
flew into his face while he was at a hockey rink located at a
municipal community centre. The rink had been rented by Hockey
Canada and two hockey associations (the Hockey Clubs). A claim was
commenced naming the municipality and Hockey Canada. In turn, the
municipality commenced a third party claim against the Hockey
Clubs.