NEX Symbol: COF.H
TORONTO, Sept. 14, 2011 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree"
or the "Company") today provided an update on the previously announced
notice of application filed 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
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"). Accordingly, the Company notified Navigators Pro of a
claim under its policy for coverage for Coventree and the individuals
named in the Notice of Hearing. In response, Navigators Pro advised the
Company that it believed 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. In October 2010, the
Company commenced proceedings in the Superior Court of Justice of
Ontario against Navigators Pro in respect of its claim under the
policy, and the hearing for Coventree's application was heard in August
The Court ruled on September 13, 2011 that the Navigators Pro policy is
operative and must respond to the claim made by Coventree for coverage
under that policy. As a result, Coventree intends to continue to pursue
its claim for coverage in respect of the claims made against Coventree
and the individuals named in the Notice of Hearing to the $5 million
limit under the policy.
Navigators Pro has the right to appeal the Court's decision to the
Ontario Court of Appeal within 30 days of the date of the Court's
decision. As a result, until the time period for the filing of an
appeal has passed or, if a notice of appeal is filed, until 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Coventree Inc.
For further information:
The Equicom Group Inc.
Tel: (416) 815-0700 x278
Tel: (416) 572-2721