The Ontario Superior Court recently addressed the evidence required to overcome the presumption of a duty to defend in the context of a liability insurance policy.
AIG Insurance Company of Canada (“AIG”) brought an application seeking equitable contribution from Lloyds Underwriters (“Lloyds”) towards the cost of defending the City of Timmins (the “City”) in an action brought by two homeowners for damage caused to their properties between April 2016 and December 2019. The homeowners had alleged the slope on which their home was constructed was slowly failing due to drainage issues and inappropriate landscaping, excavation and regrading.