The appellant company's operations manager and vice-president was severely injured in a workplace accident.
The company had previously opted to remove its executive officers from workers' compensation coverage to save money, purchasing private disability insurance instead.
After the injured officer sued the company and settled for $950,000, the company sought indemnification from its commercial general liability insurer.
The insurer denied coverage based on an 'employee injury exclusion' clause.
The Court of Appeal upheld the trial judge's finding that the injured officer was an employee at the time of the accident and that the exclusion clause unambiguously applied to all employees, including executive officers, thereby precluding coverage.