In a receivership motion concerning accounts receivable insurance, the moving party sought a declaration that no outstanding disputes remained under the policy so as to trigger payment by the insurer.
The court held that the policy’s Dispute Clause was broadly worded and suspended payment where any legitimate dispute between the insured and the buyer called into question the amount owing, including set-off claims arising from unrelated shipments.
The court rejected the argument that the clause was shipment-specific and found that the policy contemplated an ongoing buyer relationship in which unresolved unrelated complaints could affect the calculation of loss.
The motion was dismissed and costs were fixed in favour of the responding party.
