The appellant insurer issued a hybrid 'claims-made' liability policy to the respondent engineering firm.
The respondent admitted negligence regarding a sewer project and was indemnified for initial remedial work.
After the policy expired, further damage from the same negligence was discovered, and the appellant refused coverage, arguing it was a new claim made outside the policy period.
The Supreme Court of Canada dismissed the appeal, holding that the subsequent damages formed part of the original claim made during the policy period, and alternatively, that the substance of the new claim was communicated to the respondent before the policy expired.
