Where Will You Be Sued?
Summary
When drafting policies for Canadian insureds who own operations that can get them sued elsewhere, underwriters should consider where they might have to contest coverage issues and which country's law will apply. It is widely accepted that most American courts follow precedent that leans heavily towards granting coverage. A recent case in British Columbia illustrates the problem, and suggests some ways to avoid the problem through policy drafting. Canadian courts almost always respect contracting parties' clear and express choice of law and forum. Only in a very few circumstances would courts override the clearly expressed choice of the parties. In a "choice of law clause," the parties to an insurance policy specify the country or province whose law ought to be applied to any dispute flowing from the contract. Choice of law and forum selection clauses, when included in insurance policies, will afford underwriters the benefit of pre-selecting the courts in which they will appear and the law that will apply to resolve any disputes flowing from their policies.
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Extract
Where Will You Be Sued?
Alexander Holburn Beaudin & Lang LLP is a member firm of the Arc Group Canada Inc.
When drafting policies for Canadian insureds who own operations that can get them sued elsewhere, underwriters should consider where they might have to contest coverage issues and which country's law will apply. Underwriters are often surprised that they find themselve...See the full content of this document
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