Dentons Canada LLP ("Dentons") brought an application seeking declarations regarding insurance coverage for a social engineering fraud loss.
Trisura Guarantee Insurance Company ("Trisura"), the respondent insurer, moved to convert the application to an action under Rule 38.10(1)(b), arguing that there were disputed facts, unproduced evidence, and a need to consider other insurance policies and join other insurers.
Dentons subsequently narrowed its application to seek an "advisory opinion" on the interpretation of only the Computer Fraud Rider, without addressing other policy conditions or exclusions.
The court granted Trisura's motion, converting the application to an action.
The judge found that a full determination of coverage issues required a complete factual record, consideration of all potentially responsive policies, and the involvement of other insurers, which could not be achieved through a narrow application seeking an advisory opinion.
The court emphasized judicial efficiency and economy, consistent with Hryniak v Maudlin, to avoid a multiplicity of proceedings and inconsistent findings.