Law360 Canada ( October 19, 2018, 2:35 PM EDT) -- Appeals by 3091-5177 Québec inc. (Éconolodge) and Promutuel Insurance Portneuf-Champlain (Promutuel) from a judgment of the Québec Court of Appeal setting aside in part a decision of the Court of Québec. Éconolodge was a park and fly hotel. Two of its guests had their cars stolen from the hotel’s parking lot. Both victims had handed over their keys at the hotel’s front desk so that their car could be moved if necessary for snow removal. The owners were compensated for their losses by their respective insurers, AXA Insurance Inc. (Axa) and Promutuel. Each insurer then brought an action against Éconolodge. While Promutuel brought a direct action against Éconolodge’s insurer, Lombard General Insurance Company of Canada (Lombard), Axa brought it against Éconolodge, which then impleaded Lombard in warranty. Both actions were joined. Lombard’s insurance policy contained a clause excluding liability insurance coverage for damages to personal property in the care, custody or control of Éconolodge. The trial judge found that Éconolodge was liable for the theft of the cars as it was bound by a contract for services that included an obligation to look after the guests’ interests with prudence and diligence. The judge also found that the thefts were covered by Éconolodge’s liability insurance policies. The Court of Appeal affirmed the trial judge’s judgment with respect to Éconolodge’s liability. However, it found that possession of the keys meant that Éconolodge had custody of the cars and that the insurance coverage was therefore inapplicable. The Court had to decide whether Éconolodge was liable for the theft of the car and whether Éconolodge’s insurance contract excluded coverage....