Importance of early due diligence and promptness: Analysis of the decision in Commonwell v Campbell, 2019 ONCA 668

Background

In April 2013, the respondent, Shayne Campbell, was involved in a dirt bike accident. He collided with an ATV (all-terrain vehicle), injuring the ATV driver. In April 2015, Mr. Campbell was sued for negligence.

Mr. Campbell’s automobile insurer, The Guarantee Company of North America (Guarantee), had Mr. Campbell sign a non-waiver agreement and issued a reservation of rights letter before ultimately denying coverage.

The appellant, Commonwell Mutual Insurance Group (Commonwell), held Mr. Campbell’s homeowner’s policy. In June 2015, without securing a non-waiver agreement or issuing a reservation of rights letter, Commonwell appointed a lawyer to defend the claim against Mr.

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