TORONTO, June 19, 2012 /CNW/ - Coventree Inc. ("Coventree" or the
"Company") today provided an update on the previously announced legal
proceeding commenced in the Superior Court of Justice (Ontario) (the
"Court") by Coventree against Navigators Pro, on behalf of Lloyds
Syndicate 1221 (Millenium Syndicate) (collectively, "Navigators Pro"),
in connection with Coventree's claim for coverage under its directors
and officers liability insurance policy with Navigators Pro.
Coventree's view of the Navigators Pro policy is that it provided
coverage to a limit of $5 million for the matters that were the subject
of the notice of hearing and related statement of allegations issued by
Ontario Securities Commission staff dated December 7, 2009 (the "Notice
of Hearing"). After Navigators Pro took the position that it had no
obligation under the policy to provide coverage in respect of the
claims made against Coventree and the individuals named in the Notice
of Hearing, the Company commenced proceedings against Navigators Pro in
respect of its claim under the policy. The Court ruled that the
Navigators Pro policy was operative and must respond to the claim made
by Coventree for coverage under that policy. Navigators Pro appealed
that decision to the Ontario Court of Appeal, which released its
decision affirming the lower Court's ruling in May, 2012.
Navigators Pro has filed and served a notice of application seeking
leave to appeal the Ontario Court of Appeal's decision to the Supreme
Court of Canada. As a result, until the leave application has been
addressed by the Supreme Court of Canada or, if leave is granted, the
appeal has been resolved, there can be no assurance regarding when
Navigators Pro will pay under the policy nor as to whether Navigators
Pro will be liable to provide coverage at all.
This press release is intended for distribution in Canada only.
SOURCE Coventree Inc.
For further information:
Duff & Phelps Canada Restructuring Inc.
Tel: (416) 932-6225