The applicant, Royal & Sun Alliance Insurance Company (RSA), sought an order compelling the respondent, Intact Financial Corporation (Intact), to contribute its proportionate share to the settlement of an underlying personal injury claim.
The core issue was whether Intact's liability for coverage was estopped by a previous decision by Mew J., which held Intact's policy to be excess coverage.
The court found that while the duty to defend was estopped, the ultimate question of coverage was not, as it was collateral to Mew J.'s earlier decision.
Applying Supreme Court and Court of Appeal guidance, the court determined that RSA's and Intact's policies provided primary coverage for different risks and were complementary, not overlapping, thus making "other insurance" clauses inapplicable.
Intact was ordered to reimburse RSA for its proportionate share of the settlement.