Lloyd’s Underwriters v. Blue Mountain Log Sales Ltd., 2016 BCCA 352
Certain members of the Clarke Group of companies, manufacturers of goods in Canada and the United States, were sued in Washington State by the Global Group. In August, 2013, the Clarke Group tendered its defence to its American insurer, which defended under a reservation of rights. Several months later, the Global Group added claims against Canadian members of the Clarke Group, however, the latter did not initially realize that this would trigger coverage with Lloyd’s Underwriters, insurers of the Canadian members. As a result, it was not until April, 2014, that Lloyd’s was asked to defend.