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Insurer ordered to defend insureds as ambiguous application answers did not constitute material misrepresentation.
The applicants sought a declaration that the respondent insurer had a duty to defend them in an underlying action alleging misappropriation of funds from syndicated mortgages.
The insurer had denied coverage, arguing the applicants made a material misrepresentation in their insurance application regarding their source of financing.
The court found that the email relied upon by the insurer lacked detail and precision, and the insurer failed to clarify the ambiguous answers.
The court concluded there was no misrepresentation and ordered the insurer to resume defending the applicants and pay their incurred defence costs on a full indemnity basis.
Motion to quash appeal denied; validity of arbitration clause under Employment Standards Act warrants full hearing.
The moving party employer sought to quash the responding party employee's appeal of an order staying his wrongful dismissal action in favour of arbitration.
The employer argued the appeal was barred by section 7(6) of the Arbitration Act.
The employee and an intervener argued the arbitration clause was void for contracting out of the Employment Standards Act, meaning the initial stay decision was made without jurisdiction.
The court dismissed the motion to quash, finding the appeal was not completely devoid of merit and raised important questions of law regarding the intersection of the Arbitration Act and the Employment Standards Act.
Class action certification denied; City owes no private law duty of care to protect taxicab owners' economic interests.
The appellants, who own taxicab licences in Toronto, sought to certify a class proceeding against the City of Toronto for economic losses allegedly caused by the City's failure to enforce its by-laws against Uber and other private transportation companies.
The motion judge dismissed the certification motion, finding it plain and obvious that the City did not owe the appellants a private law duty of care.
The Divisional Court dismissed the appeal, agreeing that the City's regulatory role and its interactions with the appellants did not create a relationship of proximity, and that policy reasons regarding indeterminate liability negated any prima facie duty of care.