The fourth party insurer moved to strike a fourth party claim brought by mortgage defendants in an action commenced by a lender seeking repayment of a defaulted mortgage.
The defendants alleged their default resulted from an insurer’s failure to pay benefits following a motor vehicle accident and attempted to claim indemnity from that insurer.
The court held the claim for contribution and indemnity was statute‑barred under the two‑year limitation period in the Limitations Act, 2002, which runs from the date the defendants were served with the main claim.
The court further found the claim duplicated existing litigation against the insurer and therefore constituted an abuse of process.
In addition, the pleadings disclosed no reasonable cause of action because the insurer could not be liable for the lender’s loss in the mortgage action.
