In reversing a judgment rendered by the Court of Quebec, the Court of Appeal recently ruled on the scope of QEF-27—a standard endorsement contained in Quebec auto insurance policies. In this decision, the meaning of the “financial consequences” covered by the endorsement was analyzed.

The appellant, Transport Kahkashan Inc. (“TKI”), subcontracted the delivery of goods to 9310-7324 Québec Inc. (“9310”), a transport company. The latter party attached the TKI trailer to their own truck. The respondent, Aviva Insurance Company of Canada (“Aviva”), was the auto insurance company for 9310—the owner of the truck and operator of a fleet of heavy vehicles.

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