This decision concerns the interpretation and distribution of proceeds from a Legal Expense Insurance (LEI) policy following the unsuccessful outcome of a personal injury trial.
The court considered whether the applicant (Spencer and Elite Insurance Company) or the respondent (Belton) was entitled to the policy funds, and whether the funds should be shared pro rata between costs and disbursements.
The court held that the policy funds were to be paid to the applicants to offset their costs, as the law firm (MHA) had abandoned its claim for disbursements, and that Belton was not a beneficiary entitled to direct the use of the funds.
