The appellant school board appealed an order requiring it to indemnify the respondent employee for legal costs incurred during a workplace investigation into alleged expense fraud.
The employee's contract contained an indemnity clause for costs related to any 'proceeding', excluding cases of dishonesty.
The Court of Appeal dismissed the appeal, finding no prima facie evidence of dishonesty was presented, the merits of the allegations were for arbitration, and the formal workplace investigation constituted a 'proceeding' under the broad wording of the contract.
