ACTIONS - By third parties against insurer

Law360 Canada (May 18, 2023, 6:13 AM EDT) -- Appeal by 1770650 Ontario Inc. and 1062484 Ontario Inc. from the dismissal of their motion to compel payment of the amount of their judgments from McEnery’s insurer. The appellants argued that the motion judge misinterpreted the insurance policy (Policy). Each of the appellants advanced funds to McEnery, who was then a lawyer. McEnery intentionally misapplied or misappropriated the funds. Each of the appellants obtained a judgment against McEnery. McEnery did not pay the judgments. The appellants commenced garnishment proceedings. They moved for a determination that the respondent Lawyers’ Professional Indemnity Company (LawPRO) owed money to McEnery under an insurance policy it had issued. McEnery was one of the insureds under the Policy. The appellants asked that the proceeds of the Policy be paid to them in satisfaction of McEnery’s judgment debts. The motion judge found in favour of LawPRO. He concluded that, except for the sum of $27,123 that was paid by LawPRO to the appellants before the motion was heard, LawPRO owed nothing further under the Policy....
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