An insurance broker mistakenly arranged automobile insurance for a client's older vehicle instead of the newer replacement.
Following a collision involving the newer vehicle, the insurer voided the policy.
The broker's errors and omissions insurer indemnified the client and then brought a subrogated action against the original insurer, seeking recovery and a declaration of the insurer's duty to defend and indemnify.
The insurer successfully moved for summary judgment, with the court finding that the brokerage agreement provided a complete defence and that the insurer owed no duty of care to the broker to ascertain the insured's specific vehicle requirements.
The court also dismissed the claim for equitable recoupment, emphasizing the contractual terms and the role of the broker's errors and omissions insurance.
