The appellant sued its insurance brokers (the respondents) for leaving it underinsured and for negligence in failing to assist with settling its insurance claim.
The respondents claimed indemnification from the third-party insurer.
The motion judge stayed both the main action and the third-party claim because the appellant had signed a release in favour of the insurer.
On appeal, the Court of Appeal lifted the stay for the underinsured claim, finding that the third-party claim for indemnification was incompatible with the main action and could not succeed.
However, the stay remained for the negligence claim regarding the settlement.
