This appeal concerned an insurance coverage dispute following a cyberattack on CarePartners, a healthcare company.
A class action was commenced against CarePartners, and Aviva, their insurer, denied full coverage due to a Data Exclusion Endorsement.
The parties entered a funding agreement for defence and settlement on a 60/40 basis, without prejudice to coverage issues.
Aviva sought a declaration in Superior Court regarding its duty to defend and indemnify.
The application judge found no duty for personal injury claims but a duty for bodily injury claims, without allocating costs.
CarePartners cross-appealed, seeking reimbursement of their 40% settlement contribution and arguing that a new application by Aviva for allocation was res judicata.
The Court of Appeal dismissed CarePartners' cross-appeal, affirming the application judge's coverage decision and ruling that the allocation issue was not before the lower court, thus res judicata did not apply.