The court held that the insurer properly denied defence coverage under the “notwithstanding clause”. The allegations in the pleadings combined with the admissions made by the insured were sufficient to trigger the mortgage broker/mortgage intermediary exclusion. As such, the insurer’s decision to deny defence coverage was based on reasonable grounds.
James v. Lawyers’ Professional Indemnity Co., [2006] O.J. No. 46, Ontario Superior Court of Justice