The appellant, a former director of a condominium corporation, sought a declaration that the respondent insurer had a duty to defend him in an action brought by the corporation.
The application judge dismissed the application, finding the extension of coverage was not triggered and the negligence claim was merely derivative of deliberate conduct.
The Court of Appeal allowed the appeal, holding that the effective date for assessing the appellant's knowledge was the start of the successive policy periods, at which time a claim was not reasonably foreseeable.
Furthermore, the negligence claim was independent, triggering the insurer's duty to defend.