Case Overview:

• Plaintiff: Puri Professional Corporation (Puri PC), an accounting firm.
• Defendants: Lloyd’s Underwriters and The Sovereign General Insurance Company.
• Dispute: Puri PC sought errors and omissions (E&O) insurance coverage for a negligence lawsuit related to tax advice given to a client. The insurers denied coverage based on the policy's retroactive date exclusion.

Key Issues:

1. Whether summary judgment was appropriate.
2. Whether Puri PC was entitled to coverage under the policy.

Key Facts:

• Puri PC’s client alleged negligent tax advice regarding over-contributions to a tax-free savings account, leading to CRA penalties.
• The lawsuit was initiated in September 2020, but the wrongful acts occurred prior to the policy's retroactive date of April 9, 2020.
• The insurers denied coverage, citing the retroactive date exclusion.

Decision:

• The court granted the insurers' motion for summary judgment and dismissed Puri PC's cross-motion.
• Reasoning:
  • The policy explicitly excluded coverage for wrongful acts before April 9, 2020.
  • The exclusion was clear and unambiguous.
  • Arguments about clerical errors or equitable rectification were not sufficient to override the retroactive exclusion.

Costs:

• The insurers were awarded $35,000 in costs.