The appellant insurers appealed a decision granting the respondent insured carriage and control of an action against a third-party wrongdoer.
The action included both the insurers' $1.1 million subrogated claim and the insured's $700,000 uninsured loss claim.
The Court of Appeal dismissed the appeal, agreeing with the application judge that the insured should retain carriage and control given its diligence, the insurers' delay, and the lack of prejudice to the insurers.
The respondent's cross-appeal for full indemnity costs was also dismissed.