Owen Bourns

The applicants sought a declaration that their insurer had a duty to defend them in a defamation action arising from a video posted online.

They argued that, as employees of the named insured organization, the claim potentially fell within the commercial liability policy covering personal injury and advertising injury.

The court held that the duty to defend must be determined primarily from the Statement of Claim and that extrinsic evidence may only be considered in limited circumstances to clarify the substance of the pleadings.

The pleadings alleged only that the applicants posted a defamatory video and contained no facts suggesting the conduct occurred in the course of employment with the insured organization.

As there was no “mere possibility” that the claim fell within policy coverage, the insurer had no duty to defend.

The City of Ottawa appealed an arbitration award that found it breached a 2004 Minutes of Settlement with Coliseum Inc. regarding the relocation of Coliseum's dome operations from Frank Clair Stadium.

The arbitrator had awarded Coliseum $2,240,000 in damages.

The Superior Court of Justice granted leave to appeal, finding the arbitrator made extricable errors of law in interpreting the settlement agreement and in applying the doctrines of waiver and promissory estoppel.

Applying a reasonableness standard of review, the court held the arbitrator's interpretation was unreasonable and inconsistent with the facts.

The appeal was allowed and the arbitration award was set aside.