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.
For further information:
Duff & Phelps Canada Restructuring Inc.
Tel: (416) 932-6225
Email: [email protected]