The appellants, former directors and officers, sought a declaration that their insurer was obligated to pay 90 or 100 per cent of their defence costs for civil and regulatory proceedings arising from conduct in 2001 and 2003.
The insurer had been paying 50 per cent, arguing the policy only covered the 2001 conduct.
The application judge dismissed the application.
On appeal, the Court of Appeal found the policy's allocation provisions ambiguous when read with the definition of 'Loss'.
Because the factual record was insufficient to resolve the ambiguity or determine if the doctrine of contra proferentem applied, the Court allowed the appeal and directed a new hearing on the allocation issue.