Law360 Canada ( August 6, 2021, 12:31 PM EDT) -- Appeal by Temple Insurance from a decision ordering it to pay the respondents’ legal costs in defending a third-party claim. Temple provided insurance coverage under a Wrap-Up Policy to the owner, general contractor and subcontractor for property damage claims arising out of the construction of a retirement residence. The Policy required written notice of an accident or occurrence. The notice was to contain sufficient particulars to identify the insured and it was to be given by or for the insured to Temple. The Policy also provided that an insured could not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expenses other than for first aid to others at the time of an accident or occurrence. When problems arose with the Project, the owner sued the general contractor who, in turn, sued the respondents for damage alleged to have been caused by their work. When they were sued, the respondents did not notify Temple but contacted their own general liability insurers and engaged their own lawyers. The respondents did not realize they had primary coverage under the Wrap-Up Policy until Temple advised them of that fact. By that time, the respondents had incurred defence costs. Temple disputed that it was liable for defence costs voluntarily incurred by the respondents before it acknowledged its liability to defend. The Queen’s Bench judge found Temple had acquired effective notice before the lawsuits were commenced against the respondents in part, by virtue of the knowledge gained by the owner’s mistaken claim under the policy. Because of this finding, she ordered Temple to pay all the respondents’ legal fees....