The plaintiff sued the municipality for a slip and fall.
The municipality claimed contribution and indemnity from its winter maintenance contractor and the contractor's insurer.
The insurer appointed a single law firm to represent both the contractor and the municipality.
When the insurer later attempted to remove itself from representing the municipality, the municipality brought a motion to enforce a settlement agreement for full defence and indemnity.
The motion judge dismissed the motion.
The Court of Appeal allowed the appeal, holding that the appointment of joint counsel necessarily implied an agreement to both defend and indemnify the municipality, as any other interpretation would have placed counsel in an untenable conflict of interest.