Case Background:

• Incident: Brian Hollands, while driving friends home, got into an accident. Two passengers sued him, leading Hollands to claim liability coverage from his insurer, Co-operators.
• Legal Issue: Co-operators sought a declaration that Hollands did not have liability coverage at the time of the accident and thus should not defend or indemnify him.

Court Proceedings:

• Application Date: June 9, 2022
• Hearing Dates: June 3-5, 2024
• Representation:
  • Hugh G. Brown for Co-operators
  • Self-represented: Brian Hollands
  • Cameron Foster for Definity Insurance (intervenor)

Key Issues Addressed:

1. Liability Coverage Cancellation:
   • Hollands admitted to changing his car insurance from collision to comprehensive before the accident, intending the change to be effective afterward.
2. Compliance with Insurance Act:
   • Co-operators needed to prove compliance with statutory requirements for the policy change to be legally effective.

Court Findings:

• Judge: Mandhane J.
• Ruling: Co-operators successfully demonstrated that Hollands cancelled his liability coverage before the accident, complying with legal requirements.
• Outcome: Co-operators was not required to defend or indemnify Hollands.

Costs:

• Co-operators' Claim: Sought $103,375.96 in substantial indemnity costs against Definity.
• Definity's Argument: Advocated for partial indemnity costs of $58,884, citing unnecessary actions by Co-operators and the late disclosure of key documents.
• Judge's Decision:
  • Substantial indemnity costs were not justified due to Co-operators' actions that prolonged proceedings.
  • Ordered Definity to pay Co-operators $70,000 inclusive of all costs.