The City of Surrey sued the Co-operators insurance company, seeking a court order to compel them to defend Surrey in a personal injury claim. The claim had been filed by Mr. Lanki, who alleged that he had been injured while using a leg press machine at a recreation center owned by Surrey. The Co-operators argued that they were not obligated to defend Surrey based on an exclusion clause in the insurance policy. The court examined the pleadings in the underlying action and determined that the allegations, if proven, would have required the Co-operators to defend Surrey. The court emphasized that the duty to defend was broader than the duty to indemnify, and it did not depend on the final judgment. The Co-operators failed to demonstrate that the exclusion clause applied, and therefore, they were ordered to defend Surrey. The court also awarded costs to Surrey on a solicitor and own client basis.