The appellant insurer sought contribution from the respondent insurer for a $2.75 million settlement paid to a student injured at a university judo club.
Coverage under the respondent's policy depended on whether the club was a 'member club' of the provincial judo association at the time of the accident.
Although the club had not paid its annual fees, the Court of Appeal found that under the association's by-laws, membership continues until formal suspension or expulsion.
Since no such action was taken, the club remained a member, and the respondent's policy provided coverage.
The appeal was allowed.
