The appellant law firm appealed the dismissal of its application for a declaration that its professional liability insurer had a duty to defend it in an underlying action.
The insurer denied coverage based on a policy exclusion for claims arising out of the provision of investment advice or services.
The appellant argued the claim fell within an exception to the exclusion because it involved the use of the firm's trust account and the preparation of joint venture documents.
The Court of Appeal dismissed the appeal, finding that the use of a trust account as a vehicle for investment funds does not amount to the performance of professional services, and the underlying claim was essentially for business advice concerning the safety of an investment.
