The plaintiff, acting as receiver, obtained a judgment against a trust company for breach of trust.
The plaintiff then brought an action against the trust company's insurer to satisfy the judgment and moved for summary judgment.
The court found that the plaintiff had standing to sue the insurer based on an assignment of the right to sue, rather than under section 132(1) of the Insurance Act.
While the court determined that the policy initially provided coverage for the breach of trust, it ultimately held that coverage was excluded under policy provisions relating to dishonest acts and the gaining of an illegal advantage.
The court also found that the insurer's duty of good faith to the insured had been assigned to the plaintiff, leaving the issue of whether that duty was breached for trial.
