RECIPROCAL INSURANCE

Law360 Canada (November 3, 2022, 7:12 AM EDT) -- Appeal by Demme from the dismissal of her summary judgment motion. Leave to appeal the costs award was also sought on the grounds that the motion judge erred in dismissing her motion by failing to consider the four corners of the pleadings in the Underlying Actions for all possibilities of coverage, among others. Demme, a former registered nurse from Brampton Civic Hospital (Hospital), had her employment terminated upon discovery by the Hospital she misused an automatic medication dispensing unit (ADU) over an extended period to obtain Percocet tablets. Demme had used patient records to wrongfully access the ADU and obtain the Percocet. Civil actions were started by patients whose records were affected against Demme and the Hospital. The Hospital was a subscribing member of the Healthcare Insurance Reciprocal of Canada (HIROC), which insured hospitals and their employees. HIROC appointed counsel to represent the Hospital in the actions. Demme requested HIROC also provide her with defences to the actions. HIROC advised Demme there was no coverage under the Policy for the allegations advanced against her. Demme commenced the action against HIROC seeking a declaration that HIROC owed her a duty to defend the actions and related relief. Demme moved for summary judgment for such a declaration, a further declaration she was an additional insured under certain HIROC policies of insurance and therefore was entitled to liability coverage, as well as payment of the legal defence costs she had incurred to date in defending the actions against her. The motion judge dismissed the motion....
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