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The court dismissed an application for indemnification of legal costs incurred in a labour relations proceeding, finding the indemnity clause did not cover the applicant's competing business activities.
The court considered whether the respondents were required to indemnify the applicants for legal costs incurred in proceedings before the Ontario Labour Relations Board, following a dispute over the sale of business and union obligations.
The application was dismissed, with the court finding that the indemnity provision in the parties’ settlement did not extend to the costs in question, based on contractual interpretation, the parties’ intentions, and public policy.
