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The Court of Appeal held that the professional liability policy’s mitigation of loss coverage was not subject to the $10 million limit and upheld special costs.
The Court held that the facts and admissions established that the appellant arranged the mortgage transactions as an intermediary and therefore the claim falls within the mortgage intermediary exclusion of the LawPro policy; consequently LawPro's refusal to provide defence cost coverage was correct and reasonable, and the appeal was dismissed.
Source excerpt
The court held that a limitation of liability clause in an architect-client agreement extended to a subconsultant and was capped by the architect’s available professional liability insurance.
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