Court permits Insured to Appoint Counsel at Insurer’s Expense: Temple Insurance Company v Sazwan, 2018 ABQB 156

In 2018, the Alberta Court of Queen’s Bench (Court) handed down a decision that provided a precedent for an insured to choose its preferred counsel that the insurers will have the onus of financing. This is permitted in certain circumstances only, and requires a reasonable apprehension of conflict of interest.

Background

The Court reached its 2018 decision  by way of an Amended Originating Application. In this case, the Applicants were Temple Insurance Company, Aviva Insurance Company of Canada, XL Reinsurance America Inc, Arch Insurance Canada Ltd, Everest Insurance Company of Canada and Lloyd’s Underwriters (Insurers). The Respondents in this action were Clark Sazwan and Denise Sazwan (Sazwans).

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Practical Primer for Insureds and Insurers on Cyber Law

Key takeaways for the insured

Consider industry standards and best practices

  • Identify company’s legal obligations under federal and provincial privacy laws, securities laws, and policies and guidelines set out by industry regulators;
  • Develop and test an incident response plan;
  • Involve senior management, directors and officers, and legal counsel in creating the effective response plan for cybersecurity-related risks;
  • Train employees and educate staff so they are aware of their legal obligations;
  • Develop and enforce an information security policy; and
  • Participate in cybersecurity information sharing programs.

Determine your exposure

  • The most common attacks are social attacks (e.g., whaling), hacking and networking intrusions, and malware and end user attacks;
    • Social attacks are among the most common for senior business executives who have access to the company’s funds; and
    • Directors and officers may be held liable in the event of a cybersecurity attack or data breach if they failed to oversee and implement reasonable cybersecurity measures for the company, or failed to comply with any disclosure requirements after a breach occurred. 

Obtain cyber insurance coverage

  • Businesses should determine what risks are most relevant to their company and ensure they are adequately covered under their insurance policy.
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Cyber law and insurance: Four part series providing an overview of the legal and risk landscape

Four corners of the Cyber legal regime

In Canada, several federal and provincial laws and regulations govern cybersecurity and data protection, each addressing a particular issue. Due to its complex nature, businesses should ensure they understand what legislation applies to them and identify what their obligations are under the applicable legislation, as failure to comply can result in significant financial and reputational harm. By understanding this governing framework, organizations can be proactive and implement the necessary procedures to ensure they properly protect their business and clients. This article will provide a brief overview of the relevant statutes, regulations and case law relating to data protection and cybersecurity.

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Calculating Damages in Representations and Warranties Cases

This article is authored by Ephraim Stulberg for MDD Forensic Accountants.

Introduction

Mergers and acquisitions (“M&A”) can be a double-edged sword. When done right, M&A can allow acquirers to scale their businesses and create value through synergies. When done poorly, M&A can result in drastic overpayments for assets that are not nearly as valuable as believed and for economies of scale that are very difficult to achieve.

One of the main risks in M&A is information asymmetry: simply put, the vendor knows much more about its business than the acquirer. While the acquirer is able to perform due diligence, time pressures to close the deal mean that this process can sometimes be imperfect; issues are sometimes missed.  This is where Representations and Warranties (R&W) insurance can come into play.

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Determining Insurer Liability: A Borrowed Car

In the recent decision, Tokio Marine & Nichido Insurance Company v. Security National Insurance Company, 2019 ABQB 622, the Alberta Court of Queen’s Bench (the “Court”) heard an appeal of a Master’s of an application for an order declaring that another insurer had a duty to defend a motorist involved in an accident. This is an important decision for insurers as it provides an examination of a unique factual scenario where there was overlapping insurance coverage.

The Facts

On June 4, 2016, Ms. Sran drove a vehicle owned by Mr. Gill (the “Gill Vehicle”), to an Acura dealership in Calgary, Alberta (the “Dealership”), for servicing.

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Ontario sends insurance exec to London to drum up business in province

The provincial government of Ontario has chosen an insurance industry executive as one of four people who will be posted overseas to attract investment and grow international trade.

Taylor Shields, currently assistant vice president for marketing at Chubb, will be sent to London as an agents-general to help create opportunities for Ontario companies and close investment deals. Her appointment is for a period of three years and carries a salary of $185,000.

Read more: Ontario government provides Ottawa with $1.5 million in tornado assistance funding

An agents-general serves as Ontario’s primary international representative in their locations, working with the province’s existing network of 14 trade and investment offices.

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Are parents liable for their adult children’s social host mistakes?

In the 2006 case Childs v. Desormeaux, the Supreme Court of Canadaprovided initial clarification on the law of social host liability, finding that hosting a party at which alcohol is served does not, without more, establish the degree of proximity required to give rise to a duty of care. However, Childs v. Desormeaux left open the possibility of a positive duty of care in a number of scenarios, including cases of “paternalistic relationships of supervision and control, such as those of parent-child or teacher-student” (at para 36). It is a live question of concern to insurers and hosts alike to determine how far such a duty might extend.

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