Comité paritaire de l’industrie des services automobiles de la région de Montréal (CPA Montréal) v. Société d’assurances générales Northbridge (Lombard General Insurance Company of Canada), 2015 QCCA 2039
The Court of Appeal has confirmed that the amounts fraudulently collected by an employee are covered by the insurance policy and that, even if the dishonest acts occurred over many insurance periods, this series of acts constitutes a single occurrence under the policy, therefore limiting the amount of compensation payable. Upon noticing certain irregularities in company payroll ledgers, CPA (Comité paritaire de l’industrie des services automobiles de la région de Montréal) discovered that Claude Lemay, Director of Financial Services and Material Resources since 1988, had embezzled close to $2 million between 1989 and 2009.