The appellant insurer sought to add Livent Inc. and several of its directors as defendants by counterclaim in an action brought by outside directors to enforce a Directors and Officers Liability policy.
The insurer also sought to lift a CCAA stay of proceedings against Livent.
The Court of Appeal allowed the appeal in part, adding Livent as a party because the insurer was entitled to seek a declaration regarding the policy's validity against the policyholder.
However, the court refused to add the additional directors, finding it would unnecessarily complicate the discrete legal issue of coverage for the innocent outside directors.
The CCAA stay was lifted to the extent necessary to give effect to the order.
