This case involves an application and cross-application concerning the entitlement to $100,000 in proceeds from an after-the-event (ATE) legal protection insurance policy.
The primary applicant, Peter B. Cozzi Professional Corporation, sought a declaration that the proceeds belonged to the client, Quoc Nguyen, and were assignable to Cozzi for disbursements.
The cross-applicant, Aviva Insurance Company of Canada, sought a declaration that it was entitled to the proceeds to satisfy an adverse costs order against Nguyen.
The court found that the contingency fee agreement (CFA) between Cozzi and Nguyen was unenforceable due to Nguyen's disability and lack of proper court approval or litigation guardian involvement.
Consequently, Cozzi was not entitled to apply the proceeds to his disbursements.
The court also found that Aviva had no entitlement to the proceeds under the ATE policy due to lack of privity of contract.
Both applications were dismissed, and the proceeds were ordered to remain in trust pending a determination of who should act on behalf of Mr. Nguyen for their disposition.
