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Insurers liable for breach of contract based on release

Mitch Kitagawa
Joshua Vickery
February 2018 Kelly Santini LLP, Ontario

The Corporation of the Town of Huntsville v Lloyd’s Underwriters, 2017 ONSC 1208 – This application dealt with Lloyd’s Underwriters’ purported obligation to defend the Town of Huntsville. The insurers had defended the Town in an initial action (“the first action”) up until settlement but, when residual issues resulted in a further court action (“the second action”), the insurers denied any obligation to defend the Town.

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